Title: ESG disclosure and financial performance in the European oil and gas industry

Authors: Federica Doni; Antonio Corvino; Silvio Bianchi Martini

Addresses: Department of Business and Law, University of Milano-Bicocca, Milano, Italy ' Department of Economics, Management and Territory, University of Foggia, Foggia, Italy ' Department of Economics and Management, University of Pisa, Pisa, Italy

Abstract: Lately, the disclosure of sustainability issues has played a pivotal role in corporate reporting. In the academic debate, some scholars noted the need for more concerning the influence exerted by environmental, social and governance (ESG) issues over the corporate image, reputation and value creation. To bridge the last gap, this study investigates the relationship between ESG disclosure and financial performance by analysing a sample of European-listed large-sized companies operating in the oil and gas industry from 2010-2014. The methodological choice for that period resides in the intention to investigate the earlier relationship before the entry into force of the EU Directive 95/2014 on disclosure of non-financial information. Our findings demonstrate that financial performance dimension, pertinent to corporate profitability or the firm's financial autonomy, can positively affect ESG disclosure policies. These empirical findings can highlight the effectiveness of ESG disclosure by confirming the relevance of the EU initiatives.

Keywords: environmental, social and governance; ESG; disclosure; EU Directive; integrated reporting; financial performance; oil and gas industry; Europe.

DOI: 10.1504/IJBE.2025.143097

International Journal of Business Environment, 2025 Vol.16 No.1, pp.39 - 61

Received: 29 Mar 2022
Accepted: 16 Jun 2023
Published online: 03 Dec 2024 *