A Meta-Analysis of ESG Disclosure and Company’s Economic Performance

Abstract The growing concern of all UN member states to respond to global challenges, such as ending poverty, developing the health and educational systems, economic growth, reducing the impact of climate change, and preserving oceans and forests, has made ESG disclosure a necessity for companies. This study intends to analyze the relationship between ESG disclosure and company’s performance. The overall company’s performance was evaluated based on the corporate sustainability performance (CSP) framework, namely economic, environmental, and social (EES) performance. A sample of 80 articles taken from the Web of Science and Scopus databases, published in 50 journals, and reporting 742 effects, was relevant to meta-analyses the correlation between ESG disclosure and company’s economic performance. The results support the positive correlation between ESG disclosure and company’s economic performance. ESG disclosure is for more than just transparently reporting relevant ESG information, but also contributes to the consolidation of better economic performance through the degree of efficiency and effectiveness of the economic strategies of the business. In terms of practical implications, management of companies should consider ESG information disclosure through a long-term management strategy. These findings being timely especially in the case of companies for which no legislative constraints for ESG disclosure.