Abstract:

As the world struggles with climate change, social inequality, and governance challenges, Environmental, Social, and Governance(ESG) companies have emerged as leaders in sustainable business practices. This study examines the significance of ESG companies in promoting long-term financial performance, risk management, and stakeholder value. A comparative analysis of Random Effects and Fixed Effects models was conducted to assess the relationship between ESG factors and financial performance. The Hausman test confirmed that the Fixed Effects model was appropriate.

Keywords: ESG, sustainability, corporate social responsibility, financial performance, risk management, stakeholder value.