Sustainability Reporting in the EU-27: The Impact of National ESG Ecosystems and Organizational Implications

Alexandru Avram, Georgiana Maria Lungu, Costin Daniel Avram, Luminita Popescu, Daniel Toba, Iulia-Cristina Ciurea () and Georgiana Maria Lungu
Additional contact information
Alexandru Avram: Timisoara West University, Timisoara, Romania
Georgiana Maria Lungu: University of Craiova, Craiova, Romania
Costin Daniel Avram: University of Craiova, Craiova, Romania
Luminita Popescu: University of Craiova, Craiova, Romania
Daniel Toba: University of Craiova, Craiova, Romania
Iulia-Cristina Ciurea: Bucharest University of Economic Studies, Bucharest, Romania

The AMFITEATRU ECONOMIC journal, 2025, vol. 27, issue 70, 957

Abstract: Sustainability reporting is a vital element that enables stakeholders to discern how companies comply with social, environmental, and governance regulations while assessing sustainable development. This study examines the national context that influences corporate sustainability reporting, emphasising the interplay between macrolevel ESG economic conditions and firm-level disclosures mandated by frameworks such as the Corporate Sustainability Reporting Directive (CSRD). While previous studies focused on organisational and concept-level analysis, the originality of this study lies in the direct evaluation of national ESG-economic ecosystems on the preparedness of EU member states for sustainability reporting under the new directive. A macroeconomic analysis of the EU-27 member states was performed using key ESG and economic indicators, with the principal component analysis generating a composite index of national performance. Additionally, the clustering of K-means revealed different regional profiles that reflect differences in ESG economic metrics. These findings have important implications, as countries with stronger macro indicators encourage environments that facilitate the adoption of advanced reporting methods, while countries facing economic and institutional challenges may require targeted interventions to improve transparency and compliance. This approach provides valuable information for policymakers and investors, emphasising the systemic links between national conditions and effective sustainability reporting at the organisational level.

Keywords: sustainability reporting; ESG; principal component analysis; K-means clustering; decision-making process. (search for similar items in EconPapers)
JEL-codes: D83 M14 M48 Q58 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.amfiteatrueconomic.ro/temp/Article_3453.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aes:amfeco:v:27:y:2025:i:70:p:957

Access Statistics for this article

More articles in The AMFITEATRU ECONOMIC journal from Academy of Economic Studies - Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Valentin Dumitru ().