The real effect of innovation in environmental, social, and governance (ESG) disclosures on ESG performance: An integrated reporting perspective

Y Sun - Journal of Cleaner Production, 2024 - Elsevier
Journal of Cleaner Production, 2024Elsevier
Integrated reporting (IR) approach, as the latest advancement in organisational reporting
approaches, aims to elevate the integration level of environmental, social, and governance
(ESG) disclosures. However, there is a notable scarcity of studies examining the impact of IR
approach on organizations' ESG performance. This study examines the association between
the integration level of ESG disclosures and ESG performance among Chinese listed firms
from 2012 to 2020. Findings reveal a positive correlation between the integration level of …
Abstract
Integrated reporting (IR) approach, as the latest advancement in organisational reporting approaches, aims to elevate the integration level of environmental, social, and governance (ESG) disclosures. However, there is a notable scarcity of studies examining the impact of IR approach on organizations' ESG performance. This study examines the association between the integration level of ESG disclosures and ESG performance among Chinese listed firms from 2012 to 2020. Findings reveal a positive correlation between the integration level of ESG disclosures and ESG performance, supporting the notion that IR approach acts as both a stakeholder-oriented reporting tool and a means to enhance internal decision-making. To address potential endogeneity issues and ensure the robustness of these findings, additional tests were conducted. The research enriches the literature on IR and ESG disclosure, providing empirical evidence of IR approach's influence on ESG performance and underscoring its value for academics, practitioners, and policymakers.
Elsevier
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