Abstract

This study investigates the relationship between sustainability practices and profitability in Brazilian publicly traded companies by applying profitability estimation models that incorporate ESG (Environmental, Social, and Governance) indicators. Using a comprehensive dataset spanning multiple sectors and years, the research explores how ESG-related disclosures and performance affect financial outcomes. The models aim to estimate profitability while controlling for firm size, industry, and macroeconomic variables. Results suggest a positive correlation between strong ESG performance and long-term profitability, reinforcing the financial relevance of sustainable business practices. This work contributes to the growing field of sustainable finance by offering empirical evidence from an emerging market context.

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