Description of research activity:

The Sustainable Development Goals (SDGs) established by the UN in the 2030 Agenda have highlighted the need to incorporate sustainability criteria into the business world. Environmental, social and governance (ESG) considerations have become critically important in business investment and financing decisions, transforming traditional methods of financial evaluation. Companies are now faced with the need to integrate sustainability criteria into their capital structures and investment strategies, which represents a transformation of traditional value creation models. This reorientation is essential to maintain access to financing in capital markets that are progressively incorporating sustainability criteria into their risk assessments. In addition, the transition from a fossil fuel-based economy to one based on renewable energy sources requires investment in technological innovation to ensure sustainable management of energy resources without affecting productive capacity. The transformation towards sustainable business models requires changes in financial decision-making mechanisms, as it directly affects business valuation and relationships with financial stakeholders. This process requires rigorous analysis from a corporate finance perspective to understand its implications for value creation and business risk management. In this context, the main objective of this research group is to analyse the financial effects of implementing social responsibility systems aimed at sustainable development. The research focuses on analysing corporate financial decisions that facilitate the achievement of the SDGs, the energy transition and the incorporation of sustainability policies into business strategy. A fundamental aspect of the research is to examine how companies incorporate environmental and social objectives into their corporate strategy, differentiating between genuine commitments and greenwashing and socialwashing practices. The analysis of greenwashing and socialwashing is crucial to determine whether companies engage in these behaviours solely to gain social legitimacy or whether there is a real commitment to sustainability that translates into tangible financial benefits. The research specifically addresses the impact that policies aimed at improving employee satisfaction have on company value and financial risk. It examines how gender diversity in management positions and executive compensation systems influence corporate sustainability and corporate value and risk. The group also investigates the financial management of the effects of climate change and its impact on long-term value creation and the sustainability of the business model.