IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 8 NO. 5 2022
DOI: https://doi.org/10.56201/ijebm.v8.no5.2022.pg1.16

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Environmental Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria

Akwuobi, Bridget Udekwesili

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Abstract

Environmental sustainability is the art or science of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development. This study was carried out to examine the relationship between environmental sustainability reporting and financial performance of consumer goods firms in Nigeria. In order to determine the relationship between environmental sustainability reporting (ESR) and financial performance, environmental sustainability reporting was proxy using Kinder Lydenberg Domini (KLD) social-environmental performance rating system while financial performance on the hand was proxy using return on equity (ROE), net assets per share (NAPS) and return on assets (ROA). The study adopted Ex Post Facto Design and data were collected from the annual reports and accounts of consumer goods firms in Nigeria spanning from 2016-2020. The study employed OLS regression model as a statistical test tool. The findings of the study indicate that environmental sustainability reporting (ESR) has significant and positive relationship with financial performance (ROE, NAPS & ROA) of consumer goods firms in Nigeria at 5% significant level. Thus, the study concludes that environmental sustainability reporting ensures firms performance in Nigeria. Thus, the study recommended that the management of environmentally-sensitive firms in Nigeria should sustain and enhance environmental sustainability reporting since it has positive and significant relationship with financial performance

keywords:

Environmental Sustainability Reporting, Return on Assets, Return on Equity, Net Assets Per Share.

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