GREEN INNOVATION AND ESG: ANALYZING SUSTAINABILITY PRACTICES AND BUSINESS PERFORMANCE IN COMPANYS IN BRAZIL
Green Inovations; ESG; Financial Performance
The growing awareness of Stakeholders, motivated by concern about the environmental problems caused, has led to a search for more sustainable business practices, with the adoption of responsible investment principles and the integration of environmental, social and governance (ESG) criteria in business assessment. ESG ratings have become important for evaluating sustainable investments, influencing financial, business and consumer decisions. Concomitantly, in recent years, Green Innovation (IV) has become an important driver for sustainable development in organizations as it makes it possible to meet both regulatory pressure and consumer demand and increases efficiency through improvements in the use of natural resources . In this context, the research seeks to explore the relationship between Green Innovation, ESG metrics and the financial performance of publicly traded Brazilian companies, aiming to better understand how these elements relate to and influence the financial success of companies. The method used in the work will be a panel regression based on the work of Khanchel et al. (2023), the variable of interest is ROA, and the independent variables are Green Innovation (IV), based on the green patents available on Patenscope and the ESG classification, through the Eikon Refinitiv database. Based on the literature, Green Innovation and the disclosure of ESG information are expected to have a positive impact on corporate performance. The control variables adopted in the model are Company Size, Financial Leverage and Cash Asset Ratio.