The importance of ESG disclosure in ensuring the sustainable development of companies

Abstract

In today's business era, transparency and effective communication with stakeholders are essential to a company's success and sustainability. With the rise of global sustainability concerns, ESG (Environmental, Social and Governance) disclosure and adherence to the SDGs (Sustainable Development Goals) are key directions in any firm's strategies. Due to the new nature of sustainable reporting, companies are facing an increasing number of questions about the content and the way of reporting, with integrated reporting becoming an increasingly used and valued tool for assessing corporate performance. These reports go beyond the presentation of financial data and integrate financial and non-financial information to provide a complete picture of the business and its social, environmental and corporate governance impact on its operating environment. Thus, the main objective of the paper proposed by the authors is to examine the importance of ESG information in the framework of sustainable development. From the literature review, it can be appreciated that the quality of ESG information presented in sustainability reports becomes crucial for the proper understanding and assessment of a firm's performance. CZU: 005.336:005.34; JEL: M41, M48; DOI: https://doi.org/10.53486/isca2024.06