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ESG Scores and Financial Growth: A Pathway to Corporate Sustainability

Authors: Parichat Vongpatchim; Pisek Chainirun;

ESG Scores and Financial Growth: A Pathway to Corporate Sustainability

Abstract

This study examines the relationship between Environmental, Social, and Governance (ESG) scores and financial performance within publicly listed companies in Thailand. Data from 2019 to 2024, spanning multiple industries, were analyzed. The findings reveal a significant positive correlation between ESG scores and financial performance metrics. Companies with higher ESG scores exhibited superior Return on Equity (ROE), Return on Assets (ROA), and increased market valuations. The study also highlights that the impact of ESG varies across industries. The energy and manufacturing sectors experienced pronounced positive effects from environmental practices, while governance initiatives drove financial performance in the financial and technology sectors. In the agricultural sector, environmental strategies such as sustainable farming and eco-friendly tourism played a pivotal role in enhancing financial resilience. These findings underscore the importance of integrating ESG principles into corporate strategies to gain competitive advantages, strengthen investor confidence, and achieve sustainable growth. The insights from this research provide valuable guidelines for policymaking, investment decisions, and organizational management in the Thai context.

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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Top 10%
Average
Average
gold