New & Renewable Energy (신재생에너지)

Korean Society for New and Renewable Energy (한국신·재생에너지학회)
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Impact of ESG (Environmental, Social, Governance) on the Performance of Electric Utilities

ESG(Environmental, Social, Governance)가 발전기업의 성과에 미치는 영향

  • Ko, Byungguk (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School) ;
  • Lee, Kyuhwan (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School) ;
  • Yoon, Yongbeum (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School) ;
  • Park, Soojin (Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School)
  • Received : 2022.02.23
  • Accepted : 2022.04.11
  • Published : 2022.06.25
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Abstract

The environmental, social, and governance (ESG) score is gaining recognition as important nonfinancial investment criteria. With climate change emerging as a global issue, energy companies must pay attention to the ESG impact on corporate performance. In this study, the ESG impact on the performance of energy companies was analyzed based on 23 companies selected from the S&P 500. The panel corrected standard error methodology was used. The Refinitiv ESG score was the independent variable, and financial performance metrics, such as Tobin's Q, return on assets, and return on equity, were the dependent variables. It was found that the ESG score is positively associated with long-term corporate value but not with short-term profitability in the electricity utility industry. Among the subcategories of ESG, the environmental and social scores also showed positive correlations with long-term corporate value. A direct incentive policy is recommended that can offset expenses for ESG activities to reduce carbon emission in the energy sector.

Keywords

Acknowledgement

본 연구는 2019년 산업통상자원부의 지원 한국에너지기술 평가원(KETEP)의 에너지신사업글로벌 인재양성사업으로 지원받아 수행한 인력양성 사업 성과입니다(과제번호:20194010000090); 이 논문은 KINGS의 지원을 받아 연구되었습니다.

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