Financial Performance and ESG Sustainability of the Electronics Industry in Europe: A Quantitative Approach

The European electronics industry is a strategic sector for the technological and sus-tainable transition of the European Union; however, it is also among the sectors most exposed to environmental, social, and governance challenges. This study examines the relationship between ESG (Environmental, Social, Governance) performance and the economic and financial performance of companies in the electronic components sector (NACE 26) from 2014 to 2023. The aim is to assess whether and to what extent the adoption of sustainable practices can affect the profitability, operational efficiency and capital structure of companies. Using a multilevel quantitative approach, based on de-scriptive analysis, multiple regression and path analysis, the research highlights that the link between sustainability and financial performance is not direct or linear, but medi-ated by variables such as governance and leverage. The results show that, although ESG practices may lead to upfront costs and a slight reduction in profitability in the short term, they strengthen the solidity and competitive resilience of companies in the me-dium to long term. In particular, governance emerges as a strategic lever for operational efficiency and alignment between sustainability, digital innovation, and value creation. The study contributes to the debate on the role of innovative technologies and digital transformation in promoting a more sustainable, integrated, and long-term-oriented European industry, providing empirical evidence and useful implications for managers and policymakers.