ESG Audit and its Impact on Companies’ Financial Performance

Abstract

This study investigates how the implementation of ESG auditing practices affects corporate financial performance and stakeholder engagement. Through a qualitative analysis focused on the link between ESG standards and financial reporting, the research highlights the increasing role of ESG in shaping long-term value creation. The study reveals that companies integrating ESG auditing into their governance frameworks tend to benefit from improved investor confidence, reduced risk exposure, and more sustainable financial outcomes. The research approach combines conceptual analysis with a targeted review of ESG disclosures and financial statements from companies listed on the Bucharest Stock Exchange (BVB). Findings indicate that while ESG auditing is still developing as a discipline, its strategic relevance is growing, especially under the influence of regulatory shifts and stakeholder pressure for transparency and accountability. CZU: 657.6+005.216.1+005.35; JEL: M42, Q56