EFFECT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTING ON FINANCIAL PERFORMANCE: A CASE STUDY OF UNILEVER

This study examines the effect of environmental, social and governance (ESG) reporting on financial performance: a case study of Unilever. The specific objective is to investigate the relationship between ESG reporting and financial performance, to assess the effectiveness of Unilever's ESG reporting practices and to Provide insights for enhancing corporate sustainability and financial performance. The research employed a descriptive survey design methodology, with data primarily gathered through questionnaire administration. The study encompassed a total population of 755 individuals, and a sample size of 255 was determined using the Cochran (1963) formula. Of these, 204 respondents returned accurately completed questionnaires. Descriptive statistics were utilized for data presentation and analysis, while correlation analysis was employed to test the hypotheses. The findings reveal a significant positive correlation between Unilever's ESG reporting scores and both its financial performance and sustainability index. This suggests that robust ESG reporting practices are associated with better financial performance and higher sustainability outcomes within the company. Additionally, a positive correlation is observed between financial performance and sustainability, highlighting the interconnectedness of these dimensions. Based on these findings, the study recommend that Unilever continues to enhance its ESG reporting practices to drive financial performance and sustainability. By prioritizing transparency and accountability in ESG reporting, Unilever can foster stakeholder trust, mitigate risks, and seize opportunities for long-term value creation. Overall, this study underscores the importance of ESG reporting as a strategic tool for integrating sustainability into corporate decision-making and advancing financial performance. It provides valuable insights for Unilever and other companies seeking to leverage ESG reporting to achieve sustainable business outcomes.