Suggested audience: Top leaders, ESG and ESG reporting professionals
Takeaway: Comprehensive ESG disclosure significantly increases the likelihood of an EU listed company’s strong ESG and stock performance.
Researchers collected ESG disclosure, ESG performance, and financial information for over 450 publicly traded companies in the EU from 2010 to 2018. They examined how ESG disclosure affects both sustainability and financial performance. Sustainability performance was measured through economic, environmental, and social dimensions, while financial performance was reflected by stock returns. Researchers controlled for company size and economic growth to ensure that the results accurately reflected the impact of ESG disclosure.
- Companies with more comprehensive ESG disclosure have significantly better economic, environmental, and social performance.
If citing, please refer to original article: Ye, C., Song, X. & Liang, Y. Corporate sustainability performance, stock returns, and ESG indicators: fresh insights from EU member states. Environmental Science and Pollution Research 29, 680–691 (2022). https://doi.org/10.1007/s11356-022-20789-8