Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328029 
Year of Publication: 
2025
Citation: 
[Journal:] Amfiteatru Economic [ISSN:] 2247-9104 [Volume:] 27 [Issue:] 70 [Year:] 2025 [Pages:] 939-956
Publisher: 
The Bucharest University of Economic Studies, Bucharest
Abstract: 
The aim of this research is to investigate the concept of double materiality embedded in sustainability reporting requirements that address both business and society perspectives. In light of stakeholder, legitimacy, and institutional theories, this document explores how environmental, social, and governance (ESG) policies and practices (financial materiality) included in a business strategy may be related to incentives for companies to prioritise Sustainable Development Goals (SDGs) (impact materiality). The data are collected from the Refinitiv Eikon database for nonfinancial international companies, over the 2015-2024 period. Parametric and nonparametric tests for differences in means, correlation analysis, and fixed effects robust regressions are employed to validate three research hypotheses. The results illustrate significant differences on financial and impact perspectives of materiality in European Union (EU) companies, as compared to non-EU companies. Strong associations between ESG scores and SDGs are identified and discussed using the double materiality approach. SDGs prioritisation in general, but also mapped for environmental, social, and governance, is found to have mixed impacts on ESG policies and practices. The findings support the hypothesis that prioritisation of the SDGs may ensure a balance among divergent interests of managers, investors, and other stakeholders. The study has academic and practical contributions to management decisions that integrate sustainable development goals to expand businesses' awareness of sustainability reporting requirements.
Subjects: 
double materiality
sustainability reporting
Environmental
Social
and Governance (ESG) policies and practices
Sustainable Development Goals (SDGs) prioritisation
JEL: 
M41
Q01
Q56
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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