Abstract
Nowdays investors and other stakeholders increasingly consider ESG factors when making investment decisions. They were supported by numerous rating agencies that developed a large number of indices and reporting standards to facilitate the choice of the most sustainable companies from an ESG perspective. When the relationship between financial performance and sustainability was analyzed, the researchers did not reach an unanimously accepted conclusion: many studies show a positive relationship, while others show a negative one. In many studies, the relationship between ESG performance and financial performance, assessed through profitability rates was privileged. The aim of this study is to investigate if there is a relationship between ESG performance and the liquidity rates of the listed companies from emerging financial markets in European Union. The emerging markets in European Union were selected due to their attractiveness, as they offer high earning possibilities to investors. At the same time, aspects regarding the mandatory of non-financial sustainability reporting, starting from 2023, were taken into account. This will increase the comparability and homogeneity of ESG scores, but will also generate additional reporting costs, putting suplimentary pressure on companies.