The importance of green procurement in the financial activities of enterprises

Abstract

In today’s rapidly evolving financial and regulatory landscape, joint-stock companies face increasing expectations to align their corporate finance strategies with environmental, social, and governance (ESG) principles. This study explores the role of sustainable procurement - the integration of ESG criteria into procurement processes - in the financial performance and strategy formulation of joint-stock companies. By applying multiple linear regression analysis to financial and ESG data from five leading companies, the research evaluates the impact of sustainable procurement practices on key profitability indicators, specifically Return on Assets (ROA) and Return on Equity (ROE). The results reveal that sustainable procurement has a consistently positive association with both financial performance measures, emphasizing its strategic value in enhancing corporate profitability.