ANALYSIS OF THE IMPACT OF REPORTING ON ENVIRONMENTAL PERFORMANCE INDICATORS ON THE PROFITABILITY OF EUROPEAN COMPANIES

Abstract

The research in this paper is focused on the analysis of the environmental performance indicators reporting impact in the context of sustainable development on the profitability of companies. The research focuses on 60 companies in the energy sector in Europe in the period 2012-2020. Reports on sustainable development of companies available in the database of the Global Reporting Initiative (GRI) were used for the collection of data. The independent variables in this study are nine indicators of the environmental performance of sustainable development. The dependent variable is the profitability of the company, which is measured by the rate of return on total assets (ROA). The method of multiple linear regression will be used to analyze the impact of reporting on environmental performance indicators of sustainable development on the profitability of energy companies in Europe. Empirical results of this research have shown that reporting on environmental performance indicators of sustainable development has a positive effect on company profitability indicators.