Abstract
This study examines how sustainability reporting affects ESG controversies, using panel data from EU companies between 2017 and 2023. The findings indicate a positive relationship between transparent disclosures and ESG controversy scores. This suggests that firms committed to sustainability reporting manage ESG risks more effectively, reducing the likelihood of controversies. Based on these findings, we emphasise the role of structured reporting frameworks in promoting responsible corporate behaviour, contributing to a more resilient and sustainable business environment across the EU. These results have important policy implications for the Corporate Sustainability Reporting Directive (CSRD), which aims to standardise reporting practices across the EU. We argue that the comprehensive disclosure requirements of the CSRD can enhance transparency and accountability, helping firms align more closely with EU sustainability goals.
Mirza, N.; Achim, M. V.; Ribeiro-Navarrete, S. 2025. The impact of sustainable reporting on ESG controversies: evidence from the European Union and implications for CSRD implementation. International journal of managerial and financial accounting : Inderscience Publishers. ISSN 1753-6715. eISSN 1753-6723. p. 1–16. [Emerging Sources Citation Index (Web of Science); Scopus].