Assessing the impact of the European green deal and its corporate sustainability reporting directive on Esg reporting and financial performance in the European consumer staples sector - a quantitative analysis

Abstract

This study explores the relationship between ESG reporting under the Corporate Sustainability Reporting Directive and financial performance in the European consumer staples sector. Findings show that while sustainability-related data disclosure only accounts for 6,7% of required data points, greater compliance with disclosure requirements leads to a higher standard deviation in market capitalization but has no significant influence on its growth. Additionally, outperforming peers in ESG controversies is more significant than extensive data reporting. This offers valuable insights for companies and investors to prioritizing quality over quantity in their sustainability reporting and focusing on areas where they can demonstrate superior performance.