ESG ratings and financial performance of companies: A panel analysis of dependence on data from public corporations
Abstract
The purpose of this study was to assess the relationship between Environmental, Social and Governance ratings and the financial performance of a public corporation using the example of Motor Oil (Hellas) Group in 2019-2025. Horizontal analysis, financial ratio analysis, comparative analysis, descriptive statistics, Pearson correlation analysis, and simple linear regression were applied. It was found that after the deterioration of financial performance in 2020, the company’s revenue increased to EUR 16,630,862 thousand and net profit to EUR 967,209 thousand in 2022, followed by stabilization during 2023-2025. The maximum values of Return on Assets and Return on Equity reached 13.44% and 45.24%, respectively. The company maintained a Morgan Stanley Capital International Environmental, Social and Governance Rating of A during 2021-2023 and achieved a Corporate Sustainability Assessment Score of 55 and an Environmental, Social and Governance Score of 57 in 2025. Descriptive statistics indicated average Return on Assets and Return on Equity values of 8.09% and 24.23%, respectively. Correlation analysis revealed the strongest relationship between Return on Assets and Return on Equity (r = 0.945), whereas the relationship between Scope 1 emissions and Return on Equity was moderate (r = 0.666). Regression analysis did not confirm a statistically significant impact of direct greenhouse gas emissions on return on equity (R2 = 0.444; p = 0.22). The findings showed that financial performance depended on a combination of financial and nonfinancial factors rather than individual Environmental, Social and Governance indicators. The practical significance of the study lies in applying the proposed approach to comprehensively assess the relationship between Environmental, Social and Governance characteristics and the financial performance of public corporations using publicly available corporate reports