Ș e an, Alexand a; Pi ulice, Ileana Cosmina; S ănilă, Geo giana Oana; Ș e ănescu,
Au elia
A icle
The in luence o sus ainabili y epo ing on he
p o i abili y o lis ed companies in he Eu opean Union
Am i ea u Economic
P o ided in Coope a ion wi h:
The Bucha es Uni e si y o Economic S udies
Sugges ed Ci a ion: Ș e an, Alexand a; Pi ulice, Ileana Cosmina; S ănilă, Geo giana Oana; Ș e ănescu,
Au elia (2025) : The in luence o sus ainabili y epo ing on he p o i abili y o lis ed companies in
he Eu opean Union, Am i ea u Economic, ISSN 2247-9104, The Bucha es Uni e si y o Economic
S udies, Bucha es , Vol. 27, Iss. 70, pp. 994-1010,
h ps://doi.o g/10.24818/EA/2025/70/994
This Ve sion is a ailable a :
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AE
The In luence o Sus ainabili y Repo ing on he P o i abili y
o Lis ed Companies in he Eu opean Union
994 Am i ea u Economic
THE INFLUENCE OF SUSTAINABILITY REPORTING ON
THE PROFITABILITY OF LISTED COMPANIES IN THE EUROPEAN UNION
Alexand a Ș e an1, Ileana Cosmina Pi ulice2 , Geo giana Oana S ănilă3
and Au elia Ș e ănescu4
*
1)2)3)4) Bucha es Uni e si y o Economic S udies, Bucha es , Romania
Please ci e his a icle as:
Ș e an, A., Pi ulice, I.C., S ănilă, G.O. and Ș e ănescu, A.,
2025. The In luence o Sus ainabili y Repo ing on he
P o i abili y o Lis ed Companies in he Eu opean Union.
Am i ea u Economic, 27(70), pp. 994-1010.
DOI: h ps://doi.o g/10.24818/EA/2025/70/994
A icle His o y
Recei ed: 25 Ma ch 2025
Re ised: 5 May 2025
Accep ed: 5 June 2025
Abs ac
Sus ainabili y epo ing, an impe a i e o Eu opean companies, is a mul idimensional e o
ha esul s in pe o mance measu ed by ESG me ics. The unin ended consequence o his
impe a i e has been he in luence on companies’ p o i abili y. By using quan i a i e esea ch
me hods, he objec i e o he s udy is o iden i y he indica o , i.e., he combined ESG sco e
and i s componen s En i onmen (ENV), Social (SOC) and Go e nance (GOV), wi h he
mos signi ican impac on he p o i abili y o companies in he Eu opean Union, measu ed
by using he Re u n on Asse s (ROA) and Ea nings Be o e In e es s and Taxes (EBIT)
indica o s. The s a is ical analysis, using mul iple linea eg ession models applied o he
panel da a, led o he achie emen o he esea ch objec i e. The sample is composed o 432
companies ope a ing in 18 o he EU membe coun ies, and he pe iod unde analysis is
2014-2023. The ob ained esul s e ealed ha he ac o wi h he mos signi ican impac on
he ROA p o i abili y indica o is he Social Pilla , and in e ms o he EBIT p o i abili y
indica o , he ac o wi h he highes impac was shown o be he combined ESG sco e. Thus,
we p o e ha al hough sus ainabili y epo ing is a complex p ocess in ol ing nume ous
e o s and o ganisa ional changes o companies i also deli e s alue-added by medium and
long- e m inancial pe o mance and by con i ming he es ima ed posi i e e ec s o he
Co po a e Sus ainabili y Repo ing Di ec i e (CSRD). The s udy con ibu es o he ESG
li e a u e by b inging oge he companies om de eloped and eme ging EU economies,
using he EBIT indica o o es he in luence o he ESG sco e and i s componen s on
p o i abili y.
Keywo ds: sus ainabili y epo ing, ESG sco e, p o i abili y, Eu opean Union, mul iple
linea eg ession, s akeholde heo y, Di ec i e 2014/95/EU
JEL Classi ica ion: C32, L21, Q56
*
Co esponding au ho , Au elia Ș e ănescu – e-mail: au elia.s e a[email p o ec ed]
This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons
A ibu ion License, which pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in
any medium, p o ided he o iginal wo k is p ope ly ci ed. © 2025 The Au ho (s).
Sus ainabili y Repo ing: Ca alys o O ganisa ional and P o essional Change
AE
Vol. 27 • No. 70 • Augus 2025 995
In oduc ion
In ecen yea s, sus ainabili y has become an a ea o global in e es , om go e nmen s
hinking abou na ional s a egies, o bodies egula ing ac ions and se ing ules o epo ing
hem in a s uc u ed way so ha da a is c edible, compa able, and ele an ; en i ies also play
an impo an ole in he sus ainabili y loop, inco po a ing en i onmen al, social, and
go e nance (ESG) s a egies in o hei no mal business cycle and p esen ing as equi ed o
olun a ily a su plus o non- inancial in o ma ion in annual epo s. En i ies’ compliance
wi h ESG non- inancial disclosu es, whe he olun a y o equi ed, ul ima ely aims o
minimise he isk o epu a ional damage (A ou i, Gomes and Puk huan hong, 2019) o hei
epu a ion in he en i onmen /communi y in which hey ope a e. The ESG sco e has become
one o he main ools o assessing sus ainabili y pe o mance in his a ea (F iede, Busch and
Bassen, 2015). Depending on he agency ha calcula es i , he ESG sco e is de i ed based on
di e en me hodologies, which c ea es a numbe o limi a ions in i s use (Clemen , Robino
and T espeuch, 2023). I espec i e o he calcula ion me hodology, he ESG sco e is,
howe e , s uc u ed on he h ee pilla s: en i onmen al, social, and go e nance.
S udies in he dedica ed li e a u e conclude ha sus ainabili y pe o mance gene a es
inancial pe o mance o he company (Whelan e al., 2021). Va ious indica o s ha e been
used o assess inancial pe o mance in his endea ou , o example, e u n on asse s (ROA),
e u n on equi y (ROE), s ock pe o mance (Whelan e al., 2021), e u n on capi al (ROC)
(Almeyda and Da mansyah, 2019), ea nings be o e in e es and axes (EBIT) (D’Ama o,
D’Ecclesia and Le an esi, 2023).
The aim o ou esea ch is o measu e he impac ha sus ainabili y pe o mance as assessed
by he ESG sco e and by analysing i s h ee majo componen s, namely en i onmen al
(ENV), social (SOC), and go e nance (GOV), has on he inancial pe o mance o
companies. In he esea ch, inancial pe o mance was measu ed using ROA and EBIT
p o i abili y indica o s. These inancial indica o s we e es ed indi idually agains each
sus ainabili y elemen (ESG, ENV, SOC, GOV sco e) o iden i y possible co ela ions and
in luences o non- inancial elemen s on he inancial componen s. Thus, ou esea ch
hypo heses we e es ed, each o hem being ela ed o one sus ainabili y elemen , and being
decomposed in o wo seconda y hypo heses ha ela e o each inancial indica o used in he
esea ch (ROA and EBIT). The heo e ical posi ioning o ou esea ch is ealised wi hin he
amewo k o s akeholde heo y, one o he mos widely used ounda ions o analysing he
inancial pe o mance gene a ed by he ESG sco e (Whelan, e al., 2021). The a ionale o
choosing his heo e ical ounda ion is he belie ha an en i onmen ally sus ainable
company and he communi y in which i ope a es will bene i om he us o i s
s akeholde s (e.g. employees, cus ome s, c edi o s, socie y), which will b ing inancial
bene i s in he sho , medium, and long e m.
Ou esea ch esul s conclude ha he o e all ESG sco e is signi ican and posi i e in ela ion
o he p o i abili y o Eu opean companies, measu ed by bo h EBIT and ROA, bu only
sus ainable social and go e nance p ac ices induce inancial bene i s, while en i onmen al
s a egies do no signi ican ly in luence hei inancial pe o mance. Al hough sus ainabili y
epo ing is a mul idimensional, di icul , and cos -gene a ing p ocess o companies, i also
gene a es medium- and long- e m inancial pe o mance.
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The In luence o Sus ainabili y Repo ing on he P o i abili y
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996 Am i ea u Economic
Ou esea ch con ibu es o he ESG li e a u e as i b ings oge he Eu opean Union (EU)
companies om bo h de eloped and eme ging economies and es s he in luence o ESG
sco e and i s componen s on hei p o i abili y as measu ed by EBIT. Also, EBIT as a
measu e o inancial pe o mance has p e iously only been used by D’Ama o, D’Ecclesia,
and Le an esi (2023), om ou esea ch.
The pape is s uc u ed as ollows: he i s sec ion p esen s he li e a u e e iew; he second
sec ion is dedica ed o he esea ch me hodology; he esul s a e p esen ed in he hi d sec ion;
he las sec ion is dedica ed o he conclusions, he limi a ions o he s udy, and u u e
esea ch di ec ions.
1. Li e a u e e iew
Bo h in e ms o egula o s and he li e a u e, sus ainabili y is an a ea o g owing in e es and
is being add essed om mul iple pe spec i es. A he Eu opean Union le el, egula o y
amewo ks ha e been pu in place o add ess sus ainabili y issues, including Regula ion
(EU) 2020/852 on es ablishing a amewo k o acili a e sus ainable in es men s (Taxonomy
Regula ion), Di ec i e 2014/95/EU on non- inancial epo ing by companies (NFRD) and
Di ec i e 2022/2464 on sus ainabili y epo ing by companies (CSRD). The abo e-
men ioned Di ec i es a e being ansposed in o Membe S a es’ legisla ion acco ding o he
ime able. De i ed om he concep o sus ainabili y, in 2005, he wo d ESG was in oduced
(Almeyda and Da mansyah, 2019). Nowadays, ESG sco e, ega dless o how i is
cons uc ed, is conside ed as one o he main inancial ools o assess he sus ainabili y
pe o mance o a company by esponsible in es o s (F iede, Busch and Bassen, 2015).
The ESG sco e is measu ed by a ing agencies using a ious me hodologies (Be g, Koelbel
and Rigobon, 2022), bu also by a ious au ho s in he li e a u e who ha e de eloped hei
own ESG me hodologies, as in en o ied by Clemen , Robino and T espeuch (2023). The
componen elemen s o he ESG sco e may di e depending on he en i y calcula ing i (Be g,
Koelbel and Rigobon, 2022) on he one hand, and on he o he hand, e en i he e a e iden ical
elemen s, he indi idual weigh gi en o hem may di e (Dimson, Ma sh and S aun on,
2020). Al hough he ESG sco e can be app oached in a holis ic manne , he componen s ha
all in o i s composi ion, ENV, SOC and GOV, p esen di e en le els o companies
(Bissoondoyal-Bheenick, B ooks and Do, 2023). Also, he ele ance o he ESG sco e and
i s componen s is no uni e sally in e p e able, bu depends on he geog aphical a ea
(Dimson, Ma sh and S aun on, 2020; Bissoondoyal-Bheenick, B ooks and Do, 2023) and he
ype o indus y in which he company ope a es (Ga cia, Mendes-Da-Sil a and O sa o, 2017;
Dimson, Ma sh and S aun on, 2020; Bissoondoyal-Bheenick, B ooks and Do, 2023),
gene a ing he need o use i as an exclusi ely con ex ual and no gene ally alid analysis
ool. Clemen , Robino and T espeuch (2023) p esen an analysis o he iews in he li e a u e
on he a ious ac o s ha in luence he ESG sco e.
The in luence o ESG on di e en co po a e pe o mance indica o s has been analysed in a
a ie y o esea ch (Bissoondoyal-Bheenick, B ooks and Do, 2023), concluding ha he e is
a signi ican posi i e co ela ion be ween CSR/ESG policy and co po a e p o i abili y
(F iede, Busch and Bassen, 2015; Whelan e al., 2021). A me a-analysis de eloped o he
pe iod 2015-2020 was conduc ed by Whelan e al. (2021) based on mo e han 1,000 s udies
on he ela ionship be ween ESG and inancial pe o mance, conside ing co po a e inancial
pe o mance and in es men pe o mance as c i e ia.
Sus ainabili y Repo ing: Ca alys o O ganisa ional and P o essional Change
AE
Vol. 27 • No. 70 • Augus 2025 997
Pape s add essing he ela ionship be ween ESG and co po a e inancial pe o mance ha e
used indica o s such as ROA, ROE, and s ock pe o mance, while pape s analysing he
ela ionship be ween ESG and in es men pe o mance ha e aken an in es o pe spec i e
using, o example, he Sha pe a io (Whelan e al., 2021).
Aydogmus, Gulay and E gun (2022) examine he impac o he ESG sco e and i s
componen s ENV, SOC, and GOV on he i m alue, as de e mined by he Tobin’s Q a io,
and on i m p o i abili y, as measu ed by ROA. The esul s showed a signi ican and posi i e
in luence o he combined ESG sco e, as well as he indi idual, social, and go e nance sco es
on i m alue, while he en i onmen al sco e did no show a signi ican impac . In e ms o
he e ec on ROA exp essed by he ROA indica o , all ac o s (ESG, ENV, SOC and GOV)
e ealed a posi i e and signi ican in luence. Ago aki e al. (2023) pe o m a wo-
dimensional analysis conside ing he 2014/95/EU di ec i e and he COVID-19 pandemic.
The esul s e ealed ha he ESG epu a ional isk in luences he inancial pe o mance o
en i ies, i.e., he lowe he isk, he be e he pe o mance. Simila ly, Almeyda and
Da mansyah (2019) app oached inancial pe o mance om wo pe spec i es, namely he
accoun ing pe spec i e exp essed by he ROA and ROC (Re u n on Capi al) indica o s and
he s ock ma ke pe spec i e, namely he S ock P ice and P/E (P ice o Ea nings) indica o s,
showing a posi i e and signi ican in luence o ESG epo ing on he ROA and ROC
indica o s, wi h insigni ican esul s o he o he indica o s. The ENV pilla shows a posi i e
and signi ican ela ionship on ROC and S ock P ice indica o s, bu he SOC and GOV pilla s
do no e eal a signi ican ela ionship on company pe o mance.
The esea ch esul s by Minu olo, K is janpolle and S akeley (2019) e eal ha ESG has a
posi i e in luence on inancial pe o mance as measu ed by Tobin’s Q a io and ROA. By
analysing he ela ionship be ween sus ainabili y pe o mance and inancial pe o mance o
en i ies in en i onmen ally sensi i e indus ies using ROA, ROE, and Tobin’s Q a io as
indica o s o en i y p o i abili y, Naeem, Cankaya and Bildik (2022) e ealed ha
sus ainabili y pe o ming en i ies ha e inc eased p o i abili y measu ed by ROA and Tobin's
Q a io, leading o highe ma ke alues.
Resea ch conduc ed by Sa iye and Tașkin (2022) on a sample o companies lis ed in he
Bo sa Is anbul Sus ainabili y Index highligh s ha highe ESG sco es do no always mean
ha companies a e pe o ming e ec i ely in all h ee pilla s. Also, highe a ings in he
en i onmen al and social pilla s a e ela ed o company size, while p o i able companies (in
e ms o ROA) a e hose wi h be e co po a e go e nance p ac ices, as hey ha e highe
sco es in he go e nance pilla . Repo ing on en i ies in Thailand, T eepongka una and
Su ipun (2024) conclude ha ESG epo ing has a posi i e and signi ican impac on hei
p o i abili y, as exp essed by ROA and ROE indica o s.
A no el elemen appea s in he esea ch by D’Ama o, D’Ecclesia and Le an esi (2023) ha
add esses EBIT as a p o i abili y indica o , in a sample o 422 la ge, mid and small
capi alisa ion companies in 17 Eu opean coun ies, o e he pe iod 2011-2020. The esul s
e ealed ha , in o de o ha e a posi i e impac on EBIT, companies need o pay pa icula
a en ion o ESG measu es, so ha he sco es ob ained a e high, abo e 60 uni s acco ding o
he calcula ion me hodology applied by LSEG (Re ini i ).
S udies cen ed on he analysis o ESG sco es a e de eloped based on di e en heo ies speci ic
o he social sciences. The analysis by Whelan e al. (2021) no es he p e alence o s akeholde
heo y (ST) in a icles published be ween 2015-2020, al hough as a cumula i e pe cen age,
AE
The In luence o Sus ainabili y Repo ing on he P o i abili y
o Lis ed Companies in he Eu opean Union
998 Am i ea u Economic
o he heo ies (e.g., legi imacy heo y) we e o en used by esea che s. ST s ands ou in many
a icles a ge ing he ESG sco e, as i s p inciples p o ide o ai disclosu e o all ca ego ies o
s akeholde s wi hou p i ileging in es o s, while he objec i e o ESG policy is p ecisely o
demons a e ha he en i y c ea es alue o all s akeholde s, no jus sha eholde s
(Bissoondoyal-Bheenick, B ooks and Do, 2023). Indi idually o g ouped in ene gy
communi ies (Delcea e al., 2024), s akeholde s a e a he co e o he concep o sus ainabili y.
S udies (Chang, Kim and Li, 2014) examine how di e en ESG disclosu e p ac ices a ge
di e en ca ego ies o s akeholde s and how each a ec s en i y pe o mance. Posi i e
ela ionships be ween sus ainabili y pe o mance and en i y p o i abili y as exp essed by
a ious indica o s suppo s akeholde heo y (Naeem, Cankaya and Bildik, 2022).
F om ou s udy, we ound ha al hough he li e a u e has add essed he link be ween
sus ainabili y epo ing, as exp essed in ESG sco es, and inancial pe o mance, as measu ed
by indica o s such as ROA, ROE, e c., om mul iple pe spec i es, mos s udies ocus
p edominan ly on de eloped economies (Almeyda and Da mansyah, 2019; Bissoondoyal-
Bheenick, B ooks and Do, 2023) o conduc esea ch a he le el o a single coun y (Sa iye
and Tașkin, 2022; T eepongka una and Su ipun, 2024), igno ing he con ex o companies
in eme ging economies. We belie e ha such app oaches c ea e a signi ican gap and may
in luence pe cep ions abou he in luence ha sus ainabili y epo ing has on inancial
pe o mance.
Based on he p emise o ising s akeholde in e es in ESG and ST and he idea ha he long-
e m p o i abili y o companies inc eases when hey a e e ec i ely managed (Donaldson and
P es on, 1995; F eeman e al., 2010), ou pape analyses he impac o ESG sco e on he
inancial pe o mance o Eu opean companies, hus aiming o demons a e ha co po a e
sus ainabili y epo ing in ol es consis en e o s ( inancial, human esou ces, ime cos s,
and so on), bu in he long un i is also inancial pe o mance gene a o . Mo eo e , a no el
elemen is he in eg a ion o companies om de eloped coun ies and eme ging economies
in a common analy ical amewo k, which, in ou iew, inc eases he alidi y o he esul s.
The esea ch ques ion will ocus on iden i ying he sus ainabili y pe o mance indica o wi h
he mos signi ican impac on he p o i abili y o EU companies (exp essed as ROA and
EBIT), namely he o e all ESG sco e o he componen elemen s o i s s uc u e. Thus, he
esea ch hypo heses a e as ollows:
H1. The ESG sco e has a posi i e and signi ican impac on he p o i abili y o
companies.
H1.1. The ESG sco e has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he ROA indica o .
H1.2. The ESG sco e has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he EBIT indica o .
H2. The en i onmen al pilla has a posi i e and signi ican impac on he p o i abili y
o companies.
H2.1. The en i onmen al pilla has a posi i e and signi ican impac on he p o i abili y
o companies exp essed by he ROA indica o .
H2.2. The en i onmen al pilla has a posi i e and signi ican impac on he p o i abili y
o companies exp essed by he EBIT indica o .
H3. The social pilla has a posi i e and signi ican impac on he p o i abili y o companies.
Sus ainabili y Repo ing: Ca alys o O ganisa ional and P o essional Change
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Vol. 27 • No. 70 • Augus 2025 999
H3.1. The social pilla has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he ROA indica o .
H3.2. The social pilla has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he EBIT indica o .
H4. The go e nance pilla has a posi i e and signi ican impac on he p o i abili y o
companies.
H4.1. The go e nance pilla has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he ROA indica o .
H4.2. The go e nance pilla has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by he EBIT indica o .
In o de o suppo he abo e hypo heses, able no.1 summa ises he co espondence be ween
he li e a u e e iewed and he seconda y esea ch hypo heses.
Table no. 1. G ounding he esea ch hypo heses
No.
Resea ch hypo hesis
Li e a u e e e ences
H1.1
The ESG sco e has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he ROA
indica o .
Almeyda and Da mansyah (2019); Minu olo,
K is janpolle and S akeley (2019); Aydogmus,
Gulay and E gun (2022); Sa iye and Tașkin
(2022); Ago aki, e al. (2023); T eepongka una and
Su ipun (2024)
H1.2
The ESG sco e has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he EBIT
indica o .
D’Ama o, D’Ecclesia and Le an esi (2023)
H2.1
The en i onmen al pilla has a posi i e
and signi ican impac on he p o i abili y
o companies exp essed by he ROA
indica o .
Almeyda and Da mansyah (2019); Aydogmus,
Gulay and E gun (2022); Sa iye and Tașkin
(2022); T eepongka una and Su ipun (2024)
H2.2
The en i onmen al pilla has a posi i e
and signi ican impac on he p o i abili y
o companies exp essed by he EBIT
indica o .
Au ho s’ con ibu ion
H3.1
The social pilla has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he ROA
indica o .
Almeyda and Da mansyah (2019); Aydogmus,
Gulay and E gun (2022); Sa iye and Tașkin
(2022); T eepongka una and Su ipun (2024)
H3.2
The social pilla has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he EBIT
indica o .
Au ho s’ con ibu ion
H4.1
The go e nance pilla has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he ROA
indica o .
Almeyda and Da mansyah (2019); Aydogmus,
Gulay and E gun (2022); Sa iye and Tașkin
(2022); T eepongka una and Su ipun (2024)
H4.2
The go e nance pilla has a posi i e and
signi ican impac on he p o i abili y o
companies exp essed by he EBIT
indica o .
Au ho s’ con ibu ion
AE
The In luence o Sus ainabili y Repo ing on he P o i abili y
o Lis ed Companies in he Eu opean Union
1000 Am i ea u Economic
2. Resea ch me hodology
In he esea ch, using panel da a, we conduc ed a quan i a i e analysis based on an
econome ic model (simila o many esea ches in economics, e.g., Dima, Bușu and Va gas,
2022; D’Ama o, D’Ecclesia and Le an esi, 2023; T eepongka una and Su ipun, 2024).
Decomposing he ESG sco e in o he h ee componen s is a me hod used in he li e a u e o
iden i y he ex en o which each componen a ec s i m pe o mance (Bissoondoyal-
Bheenick, B ooks and Do, 2023). To achie e he esea ch objec i e, we used he LSEG Da a
& Analy ics (Re ini i ) da abase. The sample includes companies lis ed on s ock exchanges
ope a ing in Eu ope o he pe iod 2014-2023. The ex ac ed indica o s a e he ollowing:
GICS (Global Indus y Classi ica ion S anda d) Indus y, ESG Sco e, En i onmen al Pilla
Sco e, Social Pilla Sco e, Go e nance Pilla Sco e, Ne Income A e Taxes, To al Asse s,
EBIT (Ea nings Be o e In e es and Taxes). The il e s gene a ed an ini ial sample o 6.787
companies. As his s udy analyses only en i ies om Eu opean Union coun ies, which a e
subjec o Di ec i e 2014/95/EU, he i s s ep was o elimina e companies om non-EU
coun ies, i.e., 2103 companies. The nex s ep was o elimina e en i ies ha did no submi
da a in each o he e e ence yea s 2014-2023 o each indica o . The inal sample hus
consis s o 432 companies om 18 EU Membe S a es, ep esen ing a o al o 4320
obse a ions.
The pe iod analysed s a s wi h he yea o publica ion o he Di ec i e. In ou iew, his is a
pe iod ha can illus a e impo an ends in companies' non- inancial epo ing beha iou as
i con ains empo al subdi isions domina ed by "quie " bu also economically and socio-
poli ically di icul yea s: he 2014-2016 ansposi ion pe iod o he equi emen s was
ollowed by a pe iod wi hou economic, inancial, o poli ical u bulences eco ded a he
Eu opean le el, bu om 2020 onwa ds he COVID-19 pandemic and subsequen ly he wa
on he EU’s Eas e n bo de ma ked a di icul pe iod a he Eu opean le el. Thus, by he
pe iod chosen o he s udy, ou esea ch conside s he challenges gene a ed by ex e nal
ac o s in addi ion o hose caused by in e nal ac o s (da a a ailabili y and quali y,
complexi y o he supply chain, pe sonnel ime and knowledge, echnologies, cos s,
managemen in ol emen , and so on).
The esea ch is based on he independen a iables ESG Sco e, En i onmen al Pilla Sco e,,
Social Pilla Sco e and Go e nance Pilla Sco e calcula ed acco ding o he algo i hms o he
LSEG Da a & Analy ics (Re ini i ) da abase. The independen a iables in ou s udy a e
nume ical da a and in luence he dependen a iable.
The dependen a iables o he s udy a e he inancial indica o s ROA and EBIT and a e
exp essed in nume ical o m. The o me has been calcula ed as he a io o Ne Income A e
Taxes o To al Asse s, bo h ex ac ed om LSEG Da a & Analy ics (Re ini i ) and indica es
he e u n on asse s, and has been used in nume ous s udies simila o he p esen one
(Almeyda and Da mansyah, 2019; Naeem e al., 2021; Saygili, A slan and Bi kan, 2021;
Giannopoulos e al., 2022; Aydogmus, Gulay and E gun, 2022; Bahadı and Aka su, 2024;
T eepongka una and Su ipun, 2024). EBIT is he second p o i abili y indica o and is
measu ed as ea nings be o e in e es and axes. This indica o is less common in he li e a u e
(D’Ama o, D’Ecclesia and Le an esi, 2023) and is used as a dependen a iable in luenced
by he ESG sco es ob ained by companies. Fo he con ol a iable, we use i m size de ined
as he na u al loga i hm o o al asse s, consis en wi h s udies in he li e a u e (Aydogmus,
Gulay and E gun, 2022; T eepongka una and Su ipun, 2024). Howe e , we also admi he
exis ence o some impo an limi a ions o he s udy, which consis o he use o a small
Sus ainabili y Repo ing: Ca alys o O ganisa ional and P o essional Change
AE
Vol. 27 • No. 70 • Augus 2025 1001
sample in o de o mee he equi emen s o dissemina ion o in o ma ion necessa y o ca y
ou he esea ch, which may educe he deg ee o gene alisabili y o he esul s o a la ge
popula ion. Ano he limi a ion we belie e may be ep esen ed by he applica ion o s a is ical
es s, in he sense ha he e may be a iables and ac o s ha ha e no been aken in o accoun
in he cons uc ion, unning, and es ing o eg ession models. We no e ha obus ness es s
we e no applied in he esea ch.
The analysis o he a iables used in he s udy, o he pe iod 2014-2023 and he 432 sample
companies, is p esen ed in Table no. 2.
Table no. 2. Desc ip i e s a is ics
N
Min
Max
Mean
S d. De ia ion
ESG
4320
0.62
95.73
63.08
19.12
ENV
4320
0.00
99.20
63.45
24.51
SOC
4320
0.23
98.20
67.37
22.09
GOV
4320
0.86
98.75
56.83
22.12
EBIT
4320
-9.279.00
57.486.15
1.781.18
3.848.11
ROA
4320
-3.57
0.68
0.02
0.14
lnTASST
4320
1.63
14.79
9.40
1.75
Yea
4320
N/A
N/A
N/A
2.87
Valid N
4320
The a e age eco ded EBIT indica o is 1781.18 million eu o, wi h 270 obse a ions
ob aining nega i e alues, i.e. losses be o e in e es and axes. One obse a ion shows an
EBIT alue o ze o, while 4049 obse a ions show p o i be o e in e es and axes. The ROA
indica o ob ains an a e age o 2.84% ou o he 4320 obse a ions; 3698 obse a ions show
posi i e alues o he indica o , i.e., 85.6% o he sample. Consequen ly, in o de o add ess
he esea ch hypo heses, we cons uc ed he ollowing eg ession model:
D a iable(i ) = + 1 I a iable(i ) + 2 Con ol(i ) + (i ) (1)
Whe e:
D a iable(i ) – dependen a iable (ROA/ EBIT);
I a iable(i ) – independen a iable (ESG Sco e/ En i onmen al Sco e/ Social Sco e/
Go e nance Sco e);
Con ol(i ) – con ol a iable (log(TASST));
(i ) – he e o e m o i m i in pe iod .
Thus, o each o he ou esea ch hypo heses s a ed in he s udy, wo eg ession models
measu e he impac o he independen a iable (ESG Sco e/ En i onmen al Sco e/ Social
Sco e/ Go e nance Sco e) on he dependen a iables (ROA and EBIT).
Table no. 3 p esen s he eigh eg ession models used in he pape o ob ain esul s ha
add ess he esea ch hypo heses.
AE
The In luence o Sus ainabili y Repo ing on he P o i abili y
o Lis ed Companies in he Eu opean Union
1008 Am i ea u Economic
models o es he esea ch hypo heses, we ob ained mixed esul s. These exp ess a posi i e
and signi ican ela ionship o he ESG sco e wi h p o i abili y indica o s ROA and EBIT,
con e ging wi h he esul s ob ained by au ho s such as Almeyda and Da mansyah (2019),
Aydogmus, Gulay and E gun (2022), D’Ama o, D’Ecclesia and Le an esi (2023),
T eepongka una and Su ipun (2024). The posi i e and signi ican impac o he
en i onmen al pilla on i ms' p o i abili y (as measu ed by ROA and EBIT) has no been
econome ically alida ed, and ou esul s di e om he s udy o Aydogmus, Gulay and
E gun (2022). Fo he social pilla , ou esul s indica e ha i has a posi i e and signi ican
impac on i m pe o mance. The esul s a e suppo ed by simila s udies such as
Bissoondoyal-Bheenick, B ooks and Do (2023). The las hypo hesis, ha o he posi i e and
signi ican impac o he go e nance pilla on he p o i abili y o companies, eco ds mixed
esul s, in he sense ha i has a posi i e and signi ican impac on he p o i abili y o
companies exp essed by EBIT, bu has an insigni ican impac on he p o i abili y o
companies exp essed by ROA. The esul s a e di e gen wi h he s udy by Aydogmus, Gulay
and E gun (2022), bu simila o hose ob ained by Almeyda and Da mansyah (2019).
Ou esea ch concludes ha he ESG sco e has a signi ican and posi i e ela ionship wi h
he p o i abili y o Eu opean companies as measu ed by bo h EBIT and ROA, bu only
sus ainable social and go e nance s a egies induce inancial bene i s, while en i onmen al
policy/ epo ing does no signi ican ly in luence hei inancial pe o mance. These indings
a e consis en wi h s akeholde heo y, as hey highligh he endency o companies o adop
he sus ainabili y equi emen s o he communi ies in which hey ope a e h ough he
in o ma ion hey disclose and he policies hey implemen .
Gi en he posi i e and signi ican in luence o he social and go e nance componen s on
p o i abili y, companies a e encou aged o in es in employee igh s, di e si y, manage ial
e hics, and anspa ency in decision-making. Howe e , al hough he en i onmen al
componen does no ha e a signi ican impac on he p o i abili y o companies, i should no
be neglec ed, as egula o y and epu a ional isks can gene a e signi ican u u e cos s.
In es o s should a ach inc eased impo ance o ESG indica o s o help in o m in es men
decisions. Mo eo e , policy make s need o ensu e sus ainable ansi ion h ough he igh
policies, iscal incen i es, and echnical assis ance so as o c ea e a esponsible and
compe i i e economic amewo k aligned wi h he objec i es o CSRD.
The s udy con ibu es o he sus ainabili y epo ing li e a u e, as i co e s a sample o EU
companies and es s he in luence o he ESG sco e and i s componen s on hei p o i abili y
as measu ed by ROA and EBIT, and om ou esea ch, EBIT as a measu e o inancial
pe o mance has p e iously only been used by D’Ama o, D’Ecclesia and Le an esi (2023).
In e ms o esea ch limi a ions, we conside ha one o hem is de e mined by he selec ion
o companies ope a ing in he in a-EU space and subjec o he non- inancial epo ing
di ec i es. We conside as u u e esea ch di ec ions he possibili y o applying econome ic
models o he same sample bu wi h a di e en da abase o ESG in o ma ion, in o de o
analyse he simila i y (o no ) o he ob ained esul s, as well as o de elop he analysis a he
le el o indus ies by e e ing o speci ic indica o s, such as CO2, di e si y.
Sus ainabili y Repo ing: Ca alys o O ganisa ional and P o essional Change
AE
Vol. 27 • No. 70 • Augus 2025 1009
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