Evaluating ESG Reporting in the EU: Evidence from Financial and Environmental Data Using Benford’s Law

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F25%3A00142668" target="_blank" >RIV/00216224:14560/25:00142668 - isvavai.cz</a>

Výsledek na webu

<a href="https://xxcica.occ.pt/pt/programa/" target="_blank" >https://xxcica.occ.pt/pt/programa/</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Evaluating ESG Reporting in the EU: Evidence from Financial and Environmental Data Using Benford’s Law

Popis výsledku v původním jazyce

As a result of the EU Corporate Sustainability Reporting Directive (CSRD), many companies in the European Union are now required to report on sustainability-related (ESG) information in accordance with the mandatory European Sustainability Reporting Standards (ESRS). This article examines the quality of ESG reporting by applying Benford's Law to financial and environmental data disclosed by companies. The analysis confirms that financial data generally conform to Benford’s distribution, indicating reliability and consistency. In contrast, environmental data—especially CO2 emissions—deviate from the expected pattern, suggesting lower data quality and challenges in estimation or reporting practices. The findings underline the need for improved standardization and control mechanisms to enhance the credibility of ESG disclosures across the EU.

Název v anglickém jazyce

Evaluating ESG Reporting in the EU: Evidence from Financial and Environmental Data Using Benford’s Law

Popis výsledku anglicky

As a result of the EU Corporate Sustainability Reporting Directive (CSRD), many companies in the European Union are now required to report on sustainability-related (ESG) information in accordance with the mandatory European Sustainability Reporting Standards (ESRS). This article examines the quality of ESG reporting by applying Benford's Law to financial and environmental data disclosed by companies. The analysis confirms that financial data generally conform to Benford’s distribution, indicating reliability and consistency. In contrast, environmental data—especially CO2 emissions—deviate from the expected pattern, suggesting lower data quality and challenges in estimation or reporting practices. The findings underline the need for improved standardization and control mechanisms to enhance the credibility of ESG disclosures across the EU.

Druh

O - Ostatní výsledky

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů