A Streamline Sustainable Business Performance Reporting Model by an Integrated FinESG Approach

Abstract

ESG reporting and disclosure enable financial performance by attracting revenues and optimizing managerial decisions. Within this landscape falls the present study that aimed to examine the quality of ESG reporting connected to the financial performance of listed companies. Stratified analysis revealed four groups of companies according to the average value of ROA and ROE indicators, as well as four classes according to the average ESG disclosure score. The analysis of GRI topics and materiality disclosure scores showed an average disclosure level on ESG components, located between a satisfactory and a good level of disclosure. Also, companies were found to be more inclined to disclose data on the sustainability strategy but provided poor and vague information on the business model. The results of comparative clustering analysis based on FinESG reporting and disclosure scores showed that 31.57% of companies maintained their position in the final ranking. Content analysis of sustainability reports by Leximancer, v.5.0 software highlighted that the most salient topic was “employees”, and it revealed correlations between the themes “employees” and “emissions”. The practical implications of the study were found in the promotion of an integrated reporting that best meets the needs of both stakeholders and those of environmental protection and the development of society.