The theme of sustainable development in the modern world remains an integral part of the corporate responsibility of companies focused on creating a financially stable, ethically successful and socially oriented business model, which in the long term leads to a positive impact on society and the environment. These aspects are currently flowing into the ESG standards.

Although there is no fixed definition of ESG standards, in general, the following characteristic can be given. Environmental standards standards that determine the impact of a business on the environment through the consumption of natural resources necessary for the company's operating activities. Social standards relate to the impact of business on society. These are issues related to labor protection and human capital, human rights, equality, inclusivity and the development of society as a whole. Corporate governance standards relate to corporate practices and procedures that must ensure compliance with laws established by the State and stakeholders.

Since the moment of epidemiological diseases, various natural disasters, extreme heat, melting of large glaciers, various issues and disputes of a social and political nature, the issue of sustainable development is becoming more acute and the transition of companies to the "green" path of development is no longer a fashionable trend, but a new reality.

This is confirmed by the "Global Risks Report 2021", in which researchers at the World Economic Forum show that global environmental and social risks are beginning to dominate classical profitability risks (Figure 1), which encourages traditional businesses to adapt further.

According to the methodology of the Global Reporting Initiative, the KPMG study "Big shifts, small steps" shows statistics confirming the growing popularity of ESG standards, in particular, the recognition by a significant number of G250 companies that climate change and social aspects are a risk to business (Figure 2).

While a study conducted by PwC for January 2022 (Global Investor Survey, 2022), according to which 75% of respondents agree that "companies need to address ESG issues, even if it reduces profitability in the short-term," another study "Seven Business Case Benefits of a Triple Bottom Line" (Willard 2022) shows that if an ordinary company used advanced approaches to sustainable development, it could increase its profits "by at least 51-81% over three to five years."

These data lead to the hypothesis that the successful application of ESG standards can have a positive impact on the company's key performance indicators. The object of the research paper is corporate practices related to the application of ESG standards in the activities of Eni. The subject of the study is the impact of the identified corporate practices on the key performance indicators of Eni. Key indicators in the context of research paper mean financial results, operational efficiency and strategic competitiveness or attractiveness to stakeholders. To confirm or refute the set goal, a combined research method was used, which included the collection, analysis and comparison of relevant information, correlation and content analysis.

Of course, ESG standards are implemented by all business sectors, but increased requirements and expectations are still imposed on companies in the extractive sector. In particular, oil and gas companies are under the close attention of investors, states, and environmental communities due to the negative consequences of their daily activities. After the signing of the Paris Agreement in 2015, oil and gas companies recognized their special role in combating environmental and social problems associated with their production. In addition, an example can be given in 2018 from the Scientific and Economic Journal "Problems of Economics and Management of the Oil and Gas Complex", when the Danish pension fund PKA excluded a number of oil and gas companies from the investment portfolio of securities due to "inability to meet the goals of the Paris Climate Agreement". At that time, this fund left 12 companies out of 62in its portfolio, left 15 companies for monitoring, and refused to invest 35 companies.

The choice of Eni S.p.A. among companies in the extractive sector is also due to the fact that, according to the analysis of the Energy analytics channel, Kazakhstan occupies a leading 21% in the Eni portfolio in terms of the share of oil reserves distribution.

Investigating the hypothesis of the relationship between the efficiency of companies (KPIs) and the implementation of ESG standards, the following data were obtained.

In general, two opposing theories can be traced: the theory of stakeholders (Freeman's theory) and the theory of compromise.

Research based on Freeman's theory argues that satisfying the ethical interests of all stakeholders creates long-term sustainability and attractiveness, leading to an increase in the company's financial performance. Various researchers identify a positive relationship between ESG standards and EVA, EBITDA, and market capitalization. Some consider the relationship between the financial performance of companies and their location in the ESG rating, coming to the conclusion that large corporations with high ratings achieve investor attractiveness and high financial performance. Other studies show that the implementation of ESG standards has a U-shaped relation with the company's profits.

New technologies and processes take time to evaluate, but with increasing visibility of the company, profits also increase. In general, the research data show that there is a positive correlation of more than 90% based on the analysis of more than 2,000 empirical papers.

The theory of compromise considers the implementation of ESG standards and the costs necessary for their implementation as unreasonable.

It is worth noting that there is a lack of literature on the impact of ESG on the company's production or operational performance, which creates a gap in understanding this aspect of the research issue. Empirical studies on the impact of ESG on reputation capital indicate a significant positive correlation between ESG ratings and a company's reputation, suggesting that higher ESG ratings usually correspond to a company's better reputation.

The research paper uses a combined methodological approach for three KPIs:

FINANCIAL EFFICIENCY

For the study, such indicators as revenue, EBITDA and dividend yield were selected, which determine the financial efficiency of the company. To identify the subsequent correlation of the second variable, Eni's ESG metric for direct greenhouse gas emissions was used. It is assumed that the implementation of ESG standards to reduce greenhouse gas emissions leads to additional financial costs to ensure production with new efficient technology and to introduce changes in production and operational processes. For the analysis, a Correlation model in Microsoft Excel was used using the "Data Analysis" function based on company data from recent years. Thus, correlation analysis will allow us to assess whether there is a statistically significant relationship between the specified variables.

OPERATIONAL EXCELLENCE

According to the 2022 report, Eni aims to strengthen its contribution to sustainable development through three levers of an integrated business model: Carbon Neutrality by 2050, Operational Excellence and Alliances for Development ("A Just Transition"). Eni states that the business is constantly focused on Operational Excellence, which is expressed in a constant commitment through the development of skills and the expansion of diversity to protect their health, and safety, as well as the integrity of assets. In addition, Eni strives to protect the environment by promoting the efficient use of natural resources and the protection of protected areas related to biodiversity, respect and promotion of human rights, with a focus on sustainability and improving the supply chain and customer portfolio, as well as transparency and combating corruption in all its forms. In the context of Operational Excellence, scientific work conducts content analysis of the Open-es online platform based on the principle of fact-checking (Figure 3). 

The platform is aimed at involving suppliers in sustainable development and evaluating their ESG metrics with the possibility of further improvement through training and collaboration on the platform. The research paper suggests that the use of Open-es as a tool for customer orientation and transparency will contribute to achieving Operational excellence, which is an important indicator of the company's effectiveness.

INTERACTION WITH STAKEHOLDERS

As part of the "A Just Transition" program, Eni strives to create value for all stakeholders by monitoring their requests and involving local communities in the exchange of views. The study "ESG performance, investor attention, and company reputation" emphasizes that meeting the expectations of stakeholders improves the company's reputation and contributes to the accumulation of reputation capital, which is reflected in the ESG rating. The research paper aims to assess reputation capital through interaction with stakeholders and conducts a correlation analysis between the number of stakeholders and the volume of Eni investments in initiatives for local communities.

In addition to the above analyses, the research paper conducts a comparative analysis of Eni's mission and strategy with a similar company in the energy sector based on the parameters E, S and G (Figure 4).

Analysis of the content of the Open-es platform allows us to conclude that the information provided corresponds to generally accepted standards of evaluation according to ESG criteria. The high-quality content available on the platform reflects important aspects of sustainable development and social responsibility, including ethical management, environmental protection, and social innovation through 4 models (Figure 5).

Statistical data on the number of registered suppliers on the platform was also collected in the profile section of Kazakhstan. A statistical review showed that mainly medium-sized companies are registered on the platform. Many of them have high ratings for social and managerial factors, but environmental standards do not play a significant role in their sustainable development. High rates are observed in the oil and gas industry, professional services and the hotel business. The analysis demonstrates the active participation of various industries in self-assessment according to ESG standards, which indicates the broad impact of the platform on the business community and its ability to involve companies in the formation of sustainable practices. However, there is a need to involve more local suppliers in registration and subsequent assessment and growth of ESG indicators.

According to the results of an additional comparative analysis (Eni and a company of similar sector) separately according to the E, S, G standards, it follows that both companies, being among the large international energy companies, demonstrate a fairly progressive, but equivalent level according to the specified parameters. However, their practice can help in tracking global trends or to conduct gap analyses to improve the current practices of local companies.

As part of detailed analysis of the applied methodologies and an assessment of their applicability in the context of this study, the scientific work provides comprehensive recommendations and highlights the existing limitations associated with the research results obtained. These restrictions are reduced to

•   the scale of the ESG topic and the limitations of the literature

•   the tone of the investment climate dictated by the world's major investors

•   methodological limitations (lack of uniform standards and metrics)

In light of these limitations, it is important to continue scientific research:

•   aimed at developing common standards and methodologies for assessing the impact of ESG on the financial and operational performance of companies and other key performance indicators;

•   including comprehensive data analysis and long-term monitoring of companies implementing ESG standards.

Returning to the hypothesis of the study that the successful application of ESG standards in the activities of companies at present can have a positive impact on their key performance indicators, supporting financial growth, operational efficiency and strategic competitiveness or attractiveness to stakeholders, it should be noted that the answer to this question has been carefully considered using the example of Eni.

Based on the results of the study, it can be concluded that a partial answer to the scientific question has been received.

However, the following aspects must be considered:

•   A more detailed study is required to establish a causal relationship between ESG and financial results, taking into account long-standing data. At the same time, it should be borne in mind that the implementation of ESG standards does not always lead to immediate financial benefits, but it may have a long-term positive effect;

•   Weak data interconnection is not necessarily an indicator of the inefficiency of ESG standards;

•   The example of one company cannot fully reflect the situation in other companies and industries.

However, it is safe to say that the scientific work has laid an important foundation for understanding the impact of ESG standards and has highlighted the need for further research to obtain more accurate and well-founded results.