scispace - formally typeset
Search or ask a question

What is ESG disclosure? 


Best insight from top research papers

ESG disclosure refers to the practice of companies voluntarily disclosing information on environmental, social, and governance (ESG) parameters. Companies disclose their performance on ESG datapoints for two main reasons: to gain the trust of stakeholders through increased transparency and to comply with regulations imposed by governments and investment houses . ESG disclosure is an important aspect of ESG development and sustainability reporting, as it provides non-financial information about a company's performance in these areas . However, there are challenges in ESG disclosure, such as inconsistent ratings from different ESG rating agencies and the need for improved quality of information disclosure . The reliability of ESG-related data and information shared by companies can also be questioned, as it can shape the public profile of companies and their attractiveness for investors . To address these challenges, there is a need for robust models and indices that consider the quantity, quality, and reliability of ESG information disclosed by companies .

Answers from top 5 papers

More filters
Papers (5)Insight
ESG disclosure refers to the practice of corporate organizations disclosing information about their environmental, social, and governance issues that impact their behavior and long-term value creation for stakeholders.
ESG disclosure refers to the disclosure of Environmental, Social, and Governance (ESG) reporting information by public companies.
ESG disclosure refers to the process of companies publicly sharing data and information about their environmental, social, and governance (ESG) practices and performance.
ESG disclosure refers to the voluntary act of companies sharing information about their performance on environmental, social, and governance (ESG) parameters.
ESG disclosure is a framework for the disclosure of non-financial information about companies, focusing on their non-financial performance.

Related Questions

What industry is more sensible to esg disclosure?5 answersThe healthcare industry appears to be particularly sensitive to ESG disclosure. Studies have shown that ESG information disclosure significantly reduces financial risk in enterprises, with a more pronounced effect on non-state-owned healthcare companies. In sub-Saharan Africa, ESG disclosures positively impact the value of healthcare companies, surpassing the value relevance of profitability performance. Furthermore, companies in the healthcare sector are under pressure to provide adequate non-financial information, including ESG data, due to their close interaction with numerous stakeholders and the critical nature of their services. This emphasis on ESG disclosure in the healthcare industry is driven by the need to meet stakeholder demands and enhance financial performance through improved risk management and value creation.
What are the potential benefits and drawbacks of disclosing ESG costs for companies?4 answersDisclosing ESG costs can have both benefits and drawbacks for companies. Benefits include gaining stakeholders' trust through transparency, enhancing ESG communications policies, and positively impacting a firm's financial performance and market value. However, drawbacks may arise as well. ESG disclosure can lead to increased costs of debt financing, especially when interacting with growth opportunities, potentially resulting in a higher cost of financing for firms. Moreover, disclosing ESG costs could create asymmetries and distortions in investment decision-making, potentially affecting the attractiveness of companies for investors seeking responsible and sustainable options. Therefore, while ESG disclosure can bring benefits, it is essential for companies to carefully consider the potential drawbacks and implications of such disclosures.
Does environmental, social, and governance (ESG) disclosure affect SME financing decisions?5 answersESG disclosure has a significant impact on firm valuation and stock performance. The extent of ESG disclosure is influenced by factors such as board independence, gender diversity, and corporate governance practices. ESG disclosure is associated with improved return growth and reduced volatility. In the context of SME financing decisions, ESG disclosure can play a role in influencing financing decisions. However, there is no specific mention of the direct impact of ESG disclosure on SME financing decisions in the abstracts provided. Further research is needed to explore the relationship between ESG disclosure and SME financing decisions.
What is the relationship between ESG disclosure and SDG performance?5 answersESG disclosure has a positive impact on SDG performance, particularly in terms of environmental factors. Studies have shown that firms with higher ESG scores tend to have higher SDG scores, indicating a significant correlation between the two. Specifically, the disclosure of environmental performance has been found to translate into higher SDG scores, suggesting that a firm's environmental disclosures contribute to the achievement of sustainable development goals. However, the relationship between social and governance factors and SDG performance is less clear. While ESG disclosure is generally associated with improved sustainability performance, the extent of awareness and importance of ESG practices and disclosures varies among different countries and types of firms.
What are the determinants and consequences of ESG disclosure in the literature?5 answersESG disclosure in the literature is influenced by various determinants and has several consequences. The determinants of ESG disclosure include firm characteristics such as concentrated ownership, firm size, and audit by Big 4 accounting firms. Other factors like peer pressure, sustainability-focused institutional ownership, firm visibility, and performance also play a role in voluntary adoption of sustainability standards. The consequences of ESG disclosure include improvements in sustainability outcomes such as fewer work-related injuries, lower toxic releases, and higher sustainability ratings. Additionally, ESG disclosure is associated with benefits like a better reputation, enhanced financial performance, better access to external finances, and enhanced corporate accountability. The level of ESG disclosure is also influenced by factors like board CSR orientation and strategy, as well as the Global Reporting Initiative (GRI). These findings provide insights into the determinants and consequences of ESG disclosure in the literature.
Is higher ESG disclosure score means higher ESG performance score ?5 answersHigher ESG disclosure scores do not necessarily mean higher ESG performance scores. Several studies have found mixed evidence on the relationship between ESG disclosure and ESG performance.One study focused on mutual funds in India found that higher ESG scores did not generate significant positive alphas during normal periods or the COVID-19 crisis period.Another study using data from the S&P BSE 500 index found a negative ESG disclosure premium, indicating that firms with high levels of disclosure earned lower returns compared to firms with less disclosure.Additionally, a study on Chinese A-share listed companies found that greater quantitative ESG disclosure resulted in greater divergence of ESG ratings.However, there are also studies that have found a positive impact of ESG scores on company performance, improving measures such as ROA and ROE.Overall, the relationship between ESG disclosure scores and ESG performance scores is complex and can vary depending on the context and methodology used in the studies.

See what other people are reading

What are the advantages of alternative protein compared to conventional protein?
4 answers
Alternative proteins offer several advantages over conventional animal-based proteins. These alternative sources, including algae, insects, fungi, and plants, are gaining attention due to their high nutritional value, economic significance, and positive environmental impact. While alternative proteins like fungal, algal, and insect proteins exhibit advantages such as comparable protein content to meat, better digestibility, and improved foaming properties, there are still challenges to overcome in terms of nutritional composition, digestibility, solubility, and emulsion properties. Moreover, the shift towards alternative proteins is primarily driven by the need to improve sustainability in food systems, reduce environmental impact, lower land and water utilization, decrease greenhouse-gas emissions, and enhance biodiversity. The emerging alternative proteins market also holds the potential to bring about significant economic, environmental, and social changes, impacting the future of traditional agriculture.
What did kanye west action have on adidas stocks?
5 answers
Kanye West's actions have had a multifaceted impact on Adidas. While he is recognized as a Brand Ambassador for Adidas products, his controversial statements and behaviors, including public antisemitism and anti-black speeches, have led to negative perceptions and associations. This has potentially affected consumer perception and brand image, which could influence Adidas stocks indirectly. However, the direct impact of Kanye West's actions on Adidas stocks is not explicitly mentioned in the provided contexts. It is essential to consider the overall brand strategy, consumer sentiment, and market dynamics to assess the specific influence of Kanye West's actions on Adidas stocks accurately.
Why do corperations have so much corruption?
4 answers
Corporations often exhibit high levels of corruption due to various factors. One significant reason is the lack of effective enforcement of anti-bribery laws, allowing improper payments to become ingrained in a company's culture. Additionally, globalization has led to the transfer of corrupt practices by multinational corporations to developing countries, further exacerbating the issue. The conflicts between shareholders and managers in today's capitalist system can also contribute to fraudulent activities within corporations. Moreover, deficiencies in transparency, fairness, and trust within corporate structures globally create an environment conducive to corruption and mismanagement. These combined factors highlight the complex interplay of legal, cultural, and structural elements that foster corruption within corporations.
What are the key factors that have contributed to derimod company's success and growth over the years?
4 answers
The success and growth of Derimod Company over the years can be attributed to a multifaceted strategy that encompasses several key factors identified across various research contexts. Firstly, the importance of employee satisfaction and loyalty cannot be overstated, as businesses thrive on the retention and engagement of their workforce. Derimod's attention to ensuring its employees are professionally satisfied and loyal has been a cornerstone of its growth strategy, addressing the high costs associated with employee turnover. Additionally, the company's focus on customer orientation has played a pivotal role in its expansion, particularly in understanding and meeting the evolving needs of its clientele. Innovation has been another critical factor, with Derimod continuously introducing new and exciting products to keep the brand dynamic and competitive. This aligns with the broader industry trend where innovation serves as a competitive weapon, especially in dynamic environments. The company's strategic approach to corporate growth, emphasizing sales, profit-cash flow, and overall performance, has also been instrumental. Moreover, Derimod has navigated the challenges posed by the cosmetic industry, including the impact of managed care and trends towards cosmetic over clinical procedures. By focusing on acquisition strategies that enhance long-term financial performance, Derimod has effectively broadened its market reach and capabilities. The company's commitment to sustainable innovation, particularly in the cosmetic sector, has not only catered to consumer demand but also established a strong company image and customer education. Furthermore, Derimod's investment in dermal drug development projects, leveraging advances in disease understanding and therapeutic targets, showcases its forward-thinking approach in a competitive pharmaceutical landscape. Lastly, the company's resilience and adaptability in facing industry challenges, such as economic downturns and increased competition, underscore its strategic and organizational strengths. Collectively, these factors have contributed significantly to Derimod's sustained success and growth over the years.
How do strategic alliances between startups and small firms contribute to climate change mitigation and adaptation organizational goals?
4 answers
Strategic alliances between startups and small firms play a crucial role in advancing climate change mitigation and adaptation goals. SMEs are significant actors in climate action, facing challenges in decision-making due to the complexity of climate change. While studies primarily focus on mitigation strategies in industries like oil and gas, energy, and transportation, the collaboration between startups and small firms can drive innovative solutions for climate-induced challenges. By leveraging organizational heuristics and adapting management theories like resource dependence theory, these alliances can enhance resilience and foster sustainable practices, contributing to effective climate change responses and promoting a renewed social contract for business, society, and state relations.
What are some common disadvantages of using MuleSoft RPA compared to other automation tools?
5 answers
MuleSoft RPA, like other RPA tools, has limitations. One key disadvantage is the limited functionality and inability to adapt to system changes autonomously, requiring human intervention. Additionally, challenges in RPA implementation, such as the risk of using RPA as a temporary fix rather than addressing core system issues, control and security issues, underestimation of true costs, complex governance, and potential loss of process knowledge, are common drawbacks faced by organizations utilizing RPA tools. Despite the benefits RPA offers in automating manual tasks, these challenges highlight the importance of careful consideration and strategic planning when implementing MuleSoft RPA or any other RPA solution in business processes.
What are the current challenges facing Brazilian energy planning in terms of sustainability and efficiency?
4 answers
Brazilian energy planning faces a multifaceted array of challenges in terms of sustainability and efficiency, rooted in political, economic, environmental, and social dimensions. A significant hurdle is the political instability that affects climate action both within and outside Brazil, hindering the alignment of Brazilian governance with international climate action efforts and underutilizing Brazil's vast potential for renewable energy sources. The agricultural sector, particularly rice cultivation, showcases the complexity of achieving energy efficiency, where different cultivation systems (irrigated vs. rainfed) present trade-offs between yield, energy return on investment, and sustainability, highlighting the need for a nuanced approach to agricultural energy use. The transition to renewable energy sources, essential for sustainable development, requires a balanced consideration of environmental, social, and economic criteria, a challenge that is being addressed through the integration of Life Cycle Sustainability Assessment (LCSA) with decision-making methods. However, the optimal mix of energy sources is influenced by technical, geographical, and policy factors beyond just sustainability criteria. The Energy-Water-Food Nexus further complicates sustainability efforts, with interactions within this nexus contributing to deforestation, water and energy scarcity, and vulnerability to climate change, underscoring the need for improved governance and policy-making. Foreign investment, crucial for developing Brazil's energy infrastructure, faces obstacles due to legal uncertainties and market competitiveness issues, which could deter investment in the energy sector. The application of Big Data and Artificial Intelligence (BDAI) in assessing corporate sustainability presents opportunities and challenges, influenced by institutional, methodological, and technological factors. The Environmental Agenda in Public Administration (A3P) highlights the importance of rational resource use, waste management, and sustainable construction in public sector sustainability efforts. The rapid expansion of wind power capacity since the 2001 electricity crisis illustrates the challenges of sustainable and socially just decarbonization, including land demands and community opposition. The current tariff model for electricity distribution creates economic imbalances as distributed generation increases, necessitating tariff adjustments to maintain network operator remuneration. Finally, the transition of the electrical systems in Brazil, alongside Chile, towards non-conventional renewable energy sources, is shaped by historical reliance on hydro- and thermoelectricity, climate crises, and the need for diversified energy sources to reduce vulnerability.
What is the definition of stakeholders in the context of NATIONAL BORDER areas?
4 answers
Stakeholders in the context of national border areas refer to individuals or groups crucially involved in decision-making and interactions concerning border management and governance. These stakeholders play significant roles such as policy creation and facilitation, influenced by physical aspects, institutional arrangements, and legal concerns. In the aftermath of security concerns like those post-9/11, national authorities have implemented top-down strategies, potentially conflicting with the needs and perspectives of border stakeholders. Despite differing perceptions on border region development, stakeholders in areas like West Southeast Maluku recognize the potential for economic benefits and cooperation, although state-level stakeholders often dominate policy formulation. Understanding and incorporating the diverse perspectives of these stakeholders are crucial for effective border management and governance.
Can urban consumption be used as a tool to promote social cohesion and community building?
4 answers
Urban consumption can indeed serve as a mechanism to foster social cohesion and community development. By examining how people from different socio-economic backgrounds consume urban spaces, it becomes evident that consumption practices can either segregate or promote social mixing within urban areas. Initiatives like Food Policy Councils (FPCs) exemplify how collaborative governance around consumption can lead to transformative changes in urban food systems, emphasizing justice and sustainability. Furthermore, sustainable food consumption practices not only empower local communities but also contribute to the development of a more just and sustainable economy. Festivals, as temporary spaces of controlled consumption, play a role in shaping social relations and community dynamics within urban spaces. Therefore, strategic approaches to urban consumption can indeed be utilized to enhance social cohesion and community building.
What are the different citation styles used in academic referencing?
4 answers
Different citation styles used in academic referencing include various methods to acknowledge sources, such as in-text citations and reference lists. These styles help in giving credit to original authors, avoiding plagiarism, and enhancing the credibility of research. Common citation styles like APA, MLA, Chicago, and Harvard have specific guidelines for citing sources within the text and in the reference list. Authors must pay attention to details like author names, publication years, titles, and page numbers to adhere to the specific requirements of each citation style. Utilizing technology tools like Citationsy, Mendeley, and Zotero can assist authors in accurately creating citations and references without errors. Adhering to the correct citing and referencing style is crucial for maintaining academic integrity and demonstrating thoroughness in research.
How does age affect the development of critical thinking and analytical skills in media and information literacy?
5 answers
Age plays a significant role in shaping individuals' perception and skills related to media and information literacy (MIL). Older generations, particularly those aged 55 to 75, face challenges in rapidly acquiring new MIL skills due to the spread of disinformation. However, research indicates a positive relationship between critical thinking skills and information literacy among social media users aged 20-34, with a majority demonstrating high proficiency in these areas. The 2019 COVID-19 pandemic highlighted the importance of MIL education, emphasizing critical, reflective, and positive thinking skills to combat misinformation, especially in the era of fake news. Furthermore, advancements in mobile technologies have enabled individuals of all ages to access and produce information seamlessly, contributing to the potential advancement of human knowledge. Analytical thinking and knowledge are crucial factors in mitigating vulnerability to fake news, although the exact processes linking these skills to manipulation resistance remain understudied.