Does Sustainability Level Affect the Profitability Ratios of Publicly Listed Energy Companies? A Research on BIST Electricity Index

Abstract

As technological innovations depend on energy to function and are increasingly being used by businesses and households, the need for energy has increased; as an immediate consequence, energy production has gained importance in terms of sustainability. Furthermore, sustainability needs to be profitable to make energy producing companies, whose main goal is to maximize profit and value, comply to sustainability principles. Within this framework, we empirically investigate the relationship between ‘sustainability level’ and ‘profitability’ in the energy industry. We could not find though an evidence reporting any relationship between them. We argue that sustainability can be made indirectly profitable.