Journal of Optimization and Supply Chain Management

Journal of Optimization and Supply Chain Management

ESG Implementation Costs: Optional Expenditure or Essential Commitment? The Case of PPC. A Longitudinal Case Analysis (2019–2023)

Document Type : SEMIT 2025

Authors
Rachel Konstantinidou
Gkinoglou Emmanouil
Department of International and European Economic Studies, Faculty of School of Economic Studies, University of Western Macedonia, Koila Kozanis, Greece
10.22034/ISS.2026.10235.1073
Abstract
Objective: This study examines whether ESG-related investments in regulated, capital-intensive energy utilities represent discretionary corporate expenditures or strategic responses to regulatory pressure and transition risk. The analysis focuses on the Public Power Corporation (PPC) over the period 2019–2023, within a longitudinal analytical framework.
Methods: The study adopts a longitudinal single-case design based on secondary data. The dataset includes sustainability reports, financial statements, ESG disclosures, and regulatory documentation. ESG implementation is operationalized through indicators such as renewable energy capacity, emissions performance, capital allocation patterns, and external ESG ratings. Temporal changes are assessed through trend analysis and comparative evaluation across the 2019–2023 period.
Results: The results indicate a significant structural transformation in PPC’s operational and investment profile. Renewable energy capacity expanded substantially, while CO₂ emissions declined by 34% relative to 2019. Concurrently, ESG ratings improved across major providers, and capital allocation shifted progressively from carbon-intensive assets toward renewable energy investments, digitalization, and governance-related expenditures.
Conclusion: The findings suggest that ESG implementation in regulated utility sectors is more consistent with structural capital reallocation than discretionary CSR spending. The study contributes to the literature by framing ESG integration as a strategic transformation mechanism driven by institutional pressure and transition risk in capital-intensive energy industries.
Keywords
ESG
energy transition
corporate governance
sustainability reporting
Subjects
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Journal of Optimization and Supply Chain Management
Volume 3, Issue 2
Spring 2026
Pages 70-86