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Incorporating ESG Risk in Companies’ Business Models: State of Research and Energy Sector Case Studies

Author

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  • Magdalena Zioło

    (Faculty of Economics and Management, University of Szczecin, Mickiewicza 64, 71-101 Szczecin, Poland)

  • Iwona Bąk

    (Faculty of Economics, West Pomeranian University of Technology, Janickiego 31, 71-270 Szczecin, Poland)

  • Anna Spoz

    (Institute of Economics and Finance, The John Paul II Catholic University of Lublin, Aleje Racławickie 14, 20-950 Lublin, Poland)

Abstract

The article aims to systematize the state of knowledge of and research on the inclusion of ESG (Environmental, Social, and Governance) risk in companies’ business models, with a special stress on energy sector companies. Many publications address incorporating ESG, but only some deal with it from the perspective of business models. This paper fills that gap. The methods of incorporating ESG risk into a sustainable business model, identified on the basis of the literature review, were verified based on the examples of three companies from the energy industry. A two-stage review of publications from the WoS and Scopus databases was carried out, considering a more comprehensive (sustainability) and a narrower (ESG risk) range of keywords, and the period from 2000 to 2022. The result showed that SMEs and large enterprises consider ESG risk in their risk management systems (ERMs), while small enterprises and start-ups do not. In Europe, Asia, and Australia, it is common to include ESG risk in an ERM, while it is rare in Latin America. In developing countries, companies in the service sector are more likely to include ESG risk in ERMs than those in the manufacturing sector. These findings may be useful for policymakers who wish to provide support and financial incentives for companies transforming their business models toward sustainability.

Suggested Citation

  • Magdalena Zioło & Iwona Bąk & Anna Spoz, 2023. "Incorporating ESG Risk in Companies’ Business Models: State of Research and Energy Sector Case Studies," Energies, MDPI, vol. 16(4), pages 1-25, February.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:4:p:1809-:d:1065529
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