Betting on ESGs Impacts Long-Term Market Value. The Case of European Energy Firms During COVID-19 and Ukraine Armed Conflicts

Abstract

The present study evaluates how environmental, social and governance (ESG) as well as corporate social responsibility (CSR) contribute to firms’ resiliency and ability to overcome crises. Taking as a standing point the triple bottom line theory, the analysis is focused on Germany and Spain, two of the most affected nations considering COVID-19 pandemic and Ukraine armed conflicts. In this context, the companies studied operate in the energy industry, being an essential economic activity and one of the hardest hit by both crises. Following a quantitative -shareprice evolution- and qualitative -ESG adoption by companiesanalysis, main findings show that sustainable business models and an adequate ESG Management, help companies to be more resilient in a scenario of crisis. Findings contribute to re-evaluate the post-modernWorld economy together with filling some research gaps. Future recommended researchwould include analyzing other combinations of crisis-country-sector analysis.