An analysis of ESG reporting practices

: an integrated analysis of the Chairman and CEO messages

Abstract

This dissertation investigates the relation of environmental, social and governance (ESG) metrics on companies' financial performance. Specific ESG metrics, such as environmental guidelines, climate practices, biodiversity, social responsibility, and corporate governance, are examined alongside measures of financial performance. We analyse the respective sections of the Chairman, CEO and CSR disclosure included in annual management reports considering a sample of companies traded on the London Stock Exchange (LSE) between 2013 and 2023. Through an empirical analysis using a diverse sample of companies, the study seeks to identify whether there is a significant relationship between ESG practices and companies' financial performance. The results of this analysis have important implications for understanding the value of sustainable practices in corporate investment and management decisions. Using various linear regression models, we analyse and compare the different sections along with performance metrics. The research recognizes the complexities associated with assessing the impact of ESG metrics on corporate performance, highlighting the need for a rigorous, multidisciplinary approach to understanding the observed relationships.

Date of Award	8 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Alves (Supervisor)