From sustainability to financial performance: the role of SDG disclosure

IF 2.5 Q3 BUSINESS Measuring Business Excellence Pub Date : 2024-09-09 DOI:10.1108/mbe-05-2024-0054

Valentina Beretta, Maria Chiara Demartini, Sara Trucco

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Abstract

Purpose

Despite the rising trend of sustainable developmental goals (SDGs) incorporation into sustainability reporting, there remains a gap in understanding the role of SDG disclosure (SDGD) in the relationship between sustainability and financial performance. Thus, this study aims to investigate the relationship between sustainability performance and the level of SDGD; the relationship between sustainability performance and financial performance; and the link between the level of SDGD and financial performance.

Design/methodology/approach

Conducted in Italy, the analysis involves manual collection of sustainability reports from company websites for the fiscal years from 2019 to 2022, followed by textual analysis to identify SDG-related content disclosed in nonfinancial reports. Financial and nonfinancial data from Orbis and LSEG databases are used for regression analysis on panel data.

Findings

Findings align with existing literature, emphasizing the partial mediator role played by the level of SDGD in the relationship between sustainability performance and financial performance, measured by return on equity. In addition, the study suggests that there is a positive relationship between sustainability performance and the level of SDGD and a positive relationship between the level of SDGD and financial performance.

Originality/value

This study contributes to a deeper understanding of how SDG disclosures function within the broader nexus of sustainability performance and financial outcomes. Findings from this study provide empirical support for the argument that SDGD is not merely a regulatory compliance tool but also a strategic asset that can enhance a firm’s financial performance.

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从可持续性到财务业绩：披露可持续发展目标的作用

目的尽管将可持续发展目标（SDGs）纳入可持续发展报告的趋势日益明显，但在理解可持续发展目标披露（SDGD）在可持续发展与财务绩效之间的关系中的作用方面仍存在差距。因此，本研究旨在调查可持续发展绩效与 SDGD 水平之间的关系；可持续发展绩效与财务绩效之间的关系；以及 SDGD 水平与财务绩效之间的联系。设计/方法/途径本研究在意大利进行，分析包括从公司网站手动收集 2019 至 2022 财年的可持续发展报告，然后进行文本分析，以确定非财务报告中披露的 SDG 相关内容。研究结果研究结果与现有文献一致，强调了可持续发展目标水平在可持续发展绩效与以股本回报率衡量的财务绩效之间的关系中起到了部分中介作用。此外，研究还表明，可持续发展绩效与可持续发展目标水平之间存在正相关关系，而可持续发展目标水平与财务绩效之间也存在正相关关系。原创性/价值本研究有助于加深对可持续发展目标披露如何在可持续发展绩效和财务结果的更广泛关系中发挥作用的理解。本研究的结果为以下论点提供了实证支持，即可持续发展目标披露不仅是一种监管合规工具，也是一种可以提高公司财务绩效的战略资产。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Measuring Business Excellence BUSINESS-

CiteScore

5.70

自引率

4.00%

发文量

期刊介绍： Measuring Business Excellence provides international insights into non-financial ways to measure and manage business performance improvements and company’s value creation dynamics. Measuring Business Excellence will enable you to apply best practice, implement innovative thinking and learn how to use different practices. Learn how to use innovative frameworks, approaches and practices for understanding, assessing and managing the strategic value drivers of business excellence. MBE publishes both rigorous academic research and insightful practical experiences about the development and adoption of assessment and management models, tools and approaches to support excellence and value creation of 21st century organizations both private and public.