This study examines the relationship between corporate financial technology (FinTech) disclosure and environmental, social, and governance (ESG) reporting performance among non-financial firms listed on the Saudi Stock Exchange (Tadawul), with a focus on the post-COVID period from 2021 to 2024. Using an ESG Disclosure Index (ESGDI) constructed from annual reports and a textual measure of FinTech adoption, the analysis provides market-level evidence on the evolution of digital transformation and ESG disclosure in Saudi Arabia. Descriptive results indicate that ESG reporting among Tadawul firms is moderate yet heterogeneous, with governance disclosure consistently stronger than environmental and social components. Correlation analysis indicates a positive association between FinTech disclosure and overall ESG disclosure, particularly within the environmental pillar. Regression results further show that the firms with stronger FinTech disclosure tend to report higher ESGDI scores. The two-way fixed effects (TWFE) model yields statistically significant results, and the direction of the relationship remains consistent with theoretical expectations. Pillar-level analysis suggests that digital transformation is most closely aligned with environmental reporting. Taken together, the results indicate that sustainability disclosure and digital capabilities appear to co-develop in the Tadawul market. Businesses may improve their ability to track, organize, and disseminate ESG-related data by investing in digital reporting systems, analytics, and technology modernization. In this way, FinTech serves as a governance-supporting instrument that improves transparency and reporting discipline in addition to being a financial innovation. This study adds to the expanding body of knowledge by providing important emerging-market-level evidence from the Saudi capital market and highlighting how FinTech can support sustainability-driven growth in an institutional context undergoing rapid transformation.
Samontaray et al. (Fri,) studied this question.