Industrial training report: TNB Research Sdn Bhd. Special project: the impact of ESG performance on firm performance (a case of utilities industry)

The impact of environmental, social, and governance (ESG) performance on firm performance has become a major focus in today's business environment. This paper investigates the impact of ESG performance in the utility business, with a focus on understanding how sustainable practices and ethical governance affect financial outcomes and long-term viability. To accomplish the goals, a mixed-method approach was used, which included both quantitative and qualitative data. ESG ratings and financial data were obtained from reliable sources such as Eikon Database, Nasdaq, and business reports. To uncover relationships between ESG performance and financial metrics, statistical analysis, namely regression models, was applied. To acquire a better understanding, case studies of chosen utility companies with various ESG scores were investigated. ESG performance is an important factor of business performance in the utility industry. Companies that incorporate sustainable practices and ethical governance into their operations tend to outperform their competitors in terms of financial performance, investor attraction, and risk management. As stakeholders place a greater emphasis on sustainability, strong ESG practices are critical for long-term success. This internship provided significant insights into the junction of sustainability and financial performance, emphasizing the significance of ESG integration in utility corporations' strategic planning. The findings show that adhering to ESG principles can lead to improved financial outcomes and long-term viability, making it an important topic for future utility business strategy.