dEjournals Home Page
Economica
Opening page Current
Archives Search
Register Login

Economica

Vol. 14 No. 3-4 (2023)
Articles

Analysis of practice of sustainability reports

Published:
March 20, 2024
DOI Linkhttps://doi.org/10.47282/economica/2023/14/3-4/13553
Author
Edina Kulcsár
View
hu
Keywords
sustainability climate change emission performance non-financial report
How To Cite
Selected Style: APA
Kulcsár, E. (2024). Analysis of practice of sustainability reports. Economica, 14(3-4), 43-52. https://doi.org/10.47282/economica/2023/14/3-4/13553
Abstract

The responsibility of companies to reduce the negative effects of climate change is obvious. The transition from a traditional linear economy to a circular economy means an increasing burden on companies. Besides the adequate financial performance, more and more emphasis is being placed on environmental performance. This study examines the non-financial sustainability reporting practices of 20 companies listed on the Bucharest Stock Exchange. The analysis used non-financial reports of companies with the highest market capitalization between 2020 and 2022. The analysis results support that the reports of environmentally sensitive companies are more extensive and detailed concerning investigated aspects. The details and length of the companies’ ESG (Environment, Social, Governance) reports increased during the three years examined. The environmental and social aspects of disclosed documents are more detailed for the banks, the oil extraction, and the telecommunication companies. In the company sample examined, it can be observed that most of the reports are prepared according to the GRI regulation. It can also be observed that the companies examined made more detailed and longer reports. The research results also support the fact that the aspects of the ESG report (E, S, G) also depend on the sector in which the companies operate.

References
  1. ] A. Atanasovski, M. Trpeska, T. Tocev, B. Malcev, I. Dionisijev (2023) Non-financial Reporting Analysis: Does EU Membership Affect the Disclosure of Non-financial Information in Blue-Chip Companies?, Contemporary Financial Management, https://doi.org/10.4335/2023.3.7, ISBN 978-961-7124-14-9
  2. ] Ali, W., Frynas, J. G., Mahmood, Z. (2017) Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review, Corporate Social Responsibility and Environmental Management, 24(4), pp. 273-294, https://doi.org/10.1002/csr.1410.
  3. ] Beleneși, M., Bogdan, V., Popa, N. D. (2021) Disclosure Dynamics and Non-Financial Reporting Analysis. The Case of Romanian Listed Companies. Sustainability 2021, 13, 4732. https://doi.org/10.3390/su13094732
  4. ] Bhaskaran, R. K., Ting, I. W. K., Sukumaran, S. K., & Sumod, S. D. (2020). Environmental, social and governance initiatives and wealth creation for firms: An empirical examination. Managerial and Decision Economics, 41(5), 710–729.
  5. ] Bondarenko, T., Prodanova, N., Borodin, A., Kairbekuly, A. (2020). The role of non-financial reporting in corporate sustainability of pharmaceutical industry. Systematic Reviews in Pharmacy, 11(12), 1514-1522.
  6. ] Boros, A., Lentner, Cs., Nagy, V. (2022) A fenntarthatóság új szempontjai: a nem pénzügyi jelentések európai gyakorlatának elemzése, Pénzügyi szemle, 2022/2, DOI: https://doi.org/10.35551/PSZ_2022_2_2
  7. ] Devalle, A., Simona, F., Cantino, V. (2017). The linkage between ESG performance and credit ratings: A firm-level perspective analysis. International Journal of Business and Management, Vol. 12, No. 9, Aug. 2017, Page(s) 53–65. DOI:10.5539/IJBM.V12N9P53
  8. ] Friede, G., Busch, T., Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, Vol. 5, No. 4, Dec. 2015, Page(s) 210–233. DOI:10.1080/20430795.2015.1118917
  9. ] Koundouri, P.; Pittis, N.; Plataniotis, A. (2023) The Impact of ESG Performance on the Financial Performance of European Area Companies: An Empirical Examination. Environ. Sci. Proc. 2022, 15, Available at: https://doi.org/10.3390/environsciproc2022015013.
  10. ] Hajdú, T.; Lukács, J.; Reizingerné Ducsai, A. (2023) A kör négyszögesítése, avagy az ESG-jelentések számszerű minősítése Pénzügyi Szemle/Public Finance Quarterly (1963-) 69: 2 pp. 103-122. , 18 p. (2023)
  11. ] Csoma, R, Kucsebér, L. Z.(2023) A fenntarthatóság és a pénzügyi eredményesség kapcsolata szakirodalmi metaanalízis alapján, Controller Info XI. évf. 3 sz., 2023, III negyedév.
  12. ] Liu, X.; Anbumozhi, V. (2009) Determinant Factors of Corporate Environmental Information Disclosure: An Empirical Study of Chinese Listed Companies. J. Clean. Prod. 2009, 17, 593–600.
  13. ] Jha, M. K., Rangarajan, K. (2020). Analysis of corporate sustainability performance and corporate financial performance causal linkage in the Indian context. Asian Journal of Sustainability and Social Responsibility, 5(1), 1–30
  14. ] Johari, J., Komathy (2019) Sustainability reporting and firm performance: Evidence in Malaysia, International Journal of Accounting, Finance and Business, 4(17), pp. 1-7.
  15. ] Marinescu, A-O. (2020), Analysis on the Compliance of Sustainability Reports of Romanian Companies with GRI Conceptual Framework, Audit Financiar, vol. XVIII, no. 2(158)/2020, pp. 361-375, DOI: 10.20869/AUDITF/2020/158/011
  16. ] Naeem, N., Çankaya, S. (2022). The impact of ESG performance over financial performance: A study on global energy and power generation companies, International Journal of Commerce and Finance, Vol. 8, Issue 1, 2022, 1-25
  17. ] Nechita, E.; Manea, C.L.; Irimescu, A.M.; Nichita, E.M.(2020) The Content Analysis of Reporting on Sustainable Development Goals. Audit Financ. 2020, 18, 831–854.
  18. ] Sharma, E. (2019). A review of corporate social responsibility in developed and developing nations. Corporate Social Responsibility and Environmental Management, 26(4), 712–720.
  19. ] Stolowy, H., Paugam, L. (2018) The Expansion of Non-financial Reporting: an Exploratory Study, Accounting and Business Research, 48(5), pp. 525–548, https://doi.org/10.1080/00014788.2018.1470141.
  20. ] Venturelli, A.; Pizzi, S.; Caputo, F.; Principale, S. The Revision of Nonfinancial Reporting Directive: A Critical Lens on the Comparability Principle. Bus. Strategy Environ. 2020, 29, 1–14.
  21. ] Whelan, T., Atz, U., Holt, T. V., Clark, C. (2021). ESG and financial performance: Uncovering the relationship by aggregating evidence from 1,000 plus studies published between 2015-2020. NYU Stern Center for Sustainable Business, Rockefeller Asset Management