TARU PUBLICATIONS
Journal of Information and Optimization Sciences cover
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0103·ISSN (Print): 0252-2667

WoS  JIF 2026 : 0.4 (Q4)

Powered by:Powered by

Monthly Journal: Publishes theoretical and applied research on topics in information and optimization sciences.

Issues up to 2022 co-published with and available at:Taylor & Francis
submissions@tarupublications.com
Open Access Research Article

ESG and the energy mix : An analysis of European Union countries and India

* , ,

* Corresponding author · click or hover a name for details

pp. 2695–2706Vol. 46Issue 8November 2025DOI: 10.47974/JIOS-2091XML
Received:
11 Feb 2025
Published Online:
29 Nov 2025
Article type:
Research Article
Language:
EN
Article no.:
JIOS-2091
Pages:
2695–2706

Abstract

This study examines the relationship between ESG performance and energy mix composition across 14 European countries and India over the period 2009 to 2023. Drawing on Refinitiv’s ESG database, as well as energy data from Our World in Data and national statistics, the research explores how corporate ESG scores correlate with the proportional distribution of non-renewable, renewable, and nuclear energy sources. The results demonstrate a strong inverse relationship between ESG performance and fossil fuel dependency, suggesting that higher ESG engagement corresponds with a strategic shift towards cleaner energy alternatives. Renewable energy adoption exhibits a positive association with ESG scores, reinforcing the role of sustainability-driven energy policies in guiding investment decisions. However, the correlation between nuclear energy and ESG varies across regions, reflecting the influence of governance structures, regulatory frameworks, and public perception on nuclear power’s classification as a sustainable energy source. Further analysis incorporating time-lagged modeling suggests that ESG adoption is not merely a reaction to market conditions but a proactive strategy influencing long-term energy mix adjustments. The findings indicate that firms and national economies with robust ESG commitments tend to make structural shifts towards renewables over time, reinforcing the argument that ESG frameworks act as catalysts for sustainable energy transitions rather than short-term policy responses. These insights offer practical implications for policymakers, investors, and corporate leaders, highlighting the necessity of integrating ESG principles into energy security strategies while ensuring that regulatory and financial mechanisms support a balanced approach to sustainability and economic resilience.

Keywords

Subject Classifications

62P2062P2591B8491B3891B7690B50

References

[1] H. Huang, S. Ali, and Y. A. Solangi, “Analysis of the impact of economic policy uncertainty on environmental sustainability in developed and developing economies,” Sustainability, vol. 15, no. 13, pp. 5860 (2023), doi: 10.3390/su15135860.
[2] S. Ali, H. Xu, K. Yang, and Y. A. Solangi, “Environment management policy implementation for sustainable industrial production under power asymmetry in the graph model,” Sustainable Production and Consumption, vol. 29, pp. 636–648 (2022), doi: 10.1016/j.spc.2021.11.012.
[3] N. Gingrich, “To renew America,” Challenge, vol. 38, no. 5 (1995).
[4] N. Walley and B. Whitehead, “It’s not easy being green,” Harvard Business Review, vol. 72 (1994).
[5] J. Bragdon and J. Marlin, “Is pollution profitable?” Risk Management, vol. 19 (1972).
[6] H. R. Fogler and F. Nutt, “A note on social responsibility and stock valuation,” Academy of Management Journal (1975).
[7] J. D. Margolis and J. P. Walsh, “Misery loves companies: Rethinking social initiatives by business,” Administrative Science Quarterly, vol. 48, no. 2, pp. 268–305 (2003), doi: 10.2307/3556659.
[8] G. Friede, T. Busch, and A. Bassen, “ESG and financial performance: Aggregated evidence from more than 2000 empirical studies,” Journal of Sustainable Finance & Investment, vol. 5, no. 4, pp. 210–233 (2015), doi: 10.1080/20430795.2015.1118917.
[9] T. Whelan, U. Atz, T. Van Holt, and C. Clark, “Uncovering the relationship by aggregating evidence from 1,000 plus studies published between 2015–2020,” NYU Stern Center for Sustainable Business (2021).
[10] M. Aydoğmuş, G. Gülay, and K. Ergun, “Impact of ESG performance on firm value and profitability,” Borsa Istanbul Review, vol. 22, pp. S119–S127 (2022), doi: 10.1016/j.bir.2022.11.006.
[11] M. Fain, “A vállalati jövedelmezőség és az ESG-teljesítmény közötti kapcsolatok értékelése GMM-IV-módszerrel,” Gazdasági és Pénzügy, vol. 7, no. 3 (2020), doi: 10.33926/GP.2020.4.6.
[12] T. Fu and J. Li, “An empirical analysis of the impact of ESG on financial performance: The moderating role of digital transformation,” Frontiers in Environmental Science, vol. 11 (2023), doi: 10.3389/fenvs.2023.1256052.
[13] W. Henisz, T. Koller, and R. Nuttall, “Five ways that ESG creates value,” McKinsey Quarterly (2019).
[14] W.-M. Hur, T.-W. Moon, and S.-H. Ko, “How employees’ perceptions of CSR increase employee creativity: Mediating mechanisms of compassion at work and intrinsic motivation,” Journal of Business Ethics, vol. 153, no. 3, pp. 629–644 (2018), doi: 10.1007/s10551-016-3321-5.
[15] R. Albuquerque, Y. Koskinen, and C. Zhang, “Corporate social responsibility and firm risk: Theory and empirical evidence,” Management Science, vol. 65, no. 10, pp. 4451–4469 (2018), doi: 10.1287/mnsc.2018.3043.
[16] F. Su, M. Guan, Y. Liu, and J. Liu, “ESG performance and corporate fraudulence: Evidence from China,” International Review of Financial Analysis, vol. 93, pp. 103180 (2024), doi: 10.1016/j.irfa.2024.103180.
[17] W. Sun, Y. Luo, and S. M. Yiu, “ESG scores, scandal probability, and event returns,” Financial Innovation, vol. 10, pp. 121 (2024), doi: 10.1186/s40854-024-00635-1.
[18] C. Cordina, “Nuclear energy,” European Parliament Fact Sheets on the European Union (2024). [Online]. Available: https://www.europarl.europa.eu/factsheets/en/sheet/62/nuclear-energy. [Accessed: Feb. 28, 2025].
[19] H. Ritchie and P. Rosado, “Energy mix,” Our World in Data (2020). [Online]. Available: https://ourworldindata.org/energy-mix. [Accessed: Feb. 28, 2025].
[20] Y. Eliwa, A. Aboud, and A. Saleh, “ESG practices and the cost of debt: Evidence from EU countries,” Critical Perspectives on Accounting, vol. 79, pp. 102097 (2019), doi: 10.1016/j.cpa.2019.102097.

Views: 130Downloads: 70Citations: 0