The role of ESG advisory as an innovative tool for sustainable financial development: the evidence of the food companies

The financial industry is transforming sustainability through new technologies and advisory services. Investors are now more interested in financing sustainable projects, and sustainability frameworks and disclosures are being strengthened to meet the growing demand for transparency from stakeholders. Today, there is a growing recognition of the importance of environmental, social, and governance (ESG) issues, aligned with the increasing demand for corporate sustainability. ESG assessments facilitate the comparison of companies based on their sustainable practices. This research aims to examine the influence of ESG ratings on the financial performance of food companies. The paper examined the relationship between ESG ratings and financial performance using ordinary least squares regression. The results show that higher ESG ratings are associated with more positive financial performance and higher financial results. In this context, an important driver for accelerating the 'mainstreaming' of sustainable finance is the advisory process.