The impact of ESG ratings on the corporate financial performance of Russian companies

Abstract

This article examines the impact of ESG ratings on the corporate financial performance of Russian companies, in particular on return on assets (ROA). The results of the ESG rating components for components E, S, G for the period 2023 for companies included in the rating list with ESG ratings of Russian companies from the RAEX rating agency were selected as the object of the study. The purpose of the article is an empirical study of the influence of ESG rating components on the performance of Russian public companies listed on the stock exchange. To achieve this goal, regression analysis with the least squares method (OLS) was used. The results of the analysis showed that the correlation between the ROA indicator and the E, S, G indicators has minimal values. The results of the indicators calculated by regression analysis indicate a weak positive relationship between the independent variables (E, S, G) and the dependent variable (ROA). Only 6.17% of the ROA variability can be explained by ESG factors. In conclusion, the study highlights the need to further explore other factors affecting financial sustainability, and recommends more comprehensive approaches to analyzing the relationship between ESG and financial performance.