Determinants and Consequences of Sustainable Development Goals Disclosure: International Evidence

Abstract

The study examines the determinants and consequences of firm-level Sustainable Development Goals (SDG) disclosure using a sample of 6,941 firm-year observations from 30 countries during 2016–2019. Based on 17 SDG indicators developed by the United Nations (UN), the study forms an SDG Disclosure Index. The findings reveal that approximately 48.40% of firms in the sample had active stakeholder engagement programs, 53.90% maintained a sustainability committee, and 62.60% issued sustainability reports. The findings indicate that Environmental, Social and Governance (ESG) performance, stakeholder engagement, and the issuance of standalone sustainability reports positively influence firm-level SDG disclosure. Moreover, the study finds a positive association between higher levels of SDG disclosure and increased firm value. Our findings are robust using a battery of robustness tests. Given the growing global focus on SDGs and the extent of SDG disclosure by firms, this study’s findings hold significant implications for decision-makers and other stakeholders.

Keywords: Sustainable Development Goals, ESG performance, Stakeholder engagement, Sustainability committee, Firm value, International

JEL Classification: Q01, Q56, M14, M41