Romania in the ESG era: implications of a new global trend

The concept of corporate social responsibility (CSR) gained prominence in the business market a few years ago. However, years later, it has proved to be of insufficient value, which is why it is now being replaced by the broader concept of ESG (i.e. environmental, social and corporate governance). Non-financial reporting is seen as fundamental to managing the transition to a sustainable global economy, combining long-term profitability with environmental protection and social justice. The aim of the article is to present the state of implementation of the ESG strategy in Romania. The material was prepared on the basis of a critical review of available literature sources. Romanian companies have made significant progress in ESG performance. ESG is now an important factor considered in business decision-making in a growing number of companies around the world. Investors prefer to choose companies that incorporate ESG values into their business. Both public and private investments should be incentivised with the overall objectives of ESG to enable the EU's transition to a climate neutral, green, competitive and inclusive economy.