This study investigates the relationship between Circular Economy Disclosure (CED) and environmental performance in European banks by analysing the information published on their official websites. Grounded in legitimacy theory, it examines whether higher environmental performance corresponds to more extensive CED, distinguishing between substantive and symbolic approaches. The findings, based on a sample of 107 listed European banks, reveal a positive association between environmental performance and CED. This supports the substantive legitimacy perspective, indicating that CED practices tend to align with actual sustainability engagement rather than serving as mere symbolic commitment.
Bussoli et al. (Wed,) studied this question.