The Impact of Environmental Management Criteria of Oil and Gas Companies on Their Financial Performance

Growing global energy consumption leaves oil and gas companies key energy supply players. At the same time oil and gas companies are being watched by investors and counterparties, growing their compliance with green and socially responsible development. This study analyzes the impact of the environmental management criteria on financial performance of oil and gas companies. Hypotheses about cost effectiveness and a positive link between such criteria and financial indicators are being checked. Panel regression analysis covering 2002–2020 is based on ESG estimates and market-accounting indicators (Stock Return, Tobin's Q ROA, ROE). The specific characteristics of the sample, the high quality of the data, and the focus on companies in emerging economies fill gaps in the field of oil and gas research and ESG strategy. The research results are useful in making strategic decisions by companies in the industry under study and can also be used by investors in the formation of an investment portfolio.