Ecological, Social and Governance Impact on the Company's Performance: Information Technology Sector Insight

International Journal of Information Technology and Decision Making. 2025. Vol. 24. No. 3. P. 765–795.

Karminsky A. M., Alexandra A. Egorova, Chigireva D.

Sustainable topics have become increasingly important in recent years, as the world faces growing environmental and social challenges. Environmental, social, and governance (ESG) ratings are tools used to assess the sustainability practices of companies. This study focuses on the impact of environmental, social and governance components on the financial performance of IT companies. The panel data was collected for 43 IT companies operating in the time period from 2004 to 2020. Data includes ESG ratings, their components and financial performance indicators of IT companies. The method of OLS regression, a model with fixed individual effects or a model with random individual effects were used. It was found out that the increase in the environmental and social scores have a significant impact on financial performance of IT companies. The article is an extended version of your work published in the ITQM 2022.

Keywords: корпоративные финансы, устойчивое развитие, corporate finance, финансовое положение организации, financial performance, sustainable development, ESG, ESG rating, ESG, ESG рейтинг

Publication based on the results of: Decision-Making in Socio-Economic, Political and Financial Spheres (2025)