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

• Autoři: POPELKOVÁ Veronika; LUTY Piotr; SEQUEIRA Romeu; MOTA Miguel; COSTA Rui
• Rok publikování: 2025
• Druh: Další prezentace na konferencích
• Fakulta / Pracoviště MU: Ekonomicko-správní fakulta

Přiložené soubory

• ESG_Benford_Law_Working_Paper_Luty__Popelkova.docx
• ESG_Benford_Law_Working_Paper_Luty__Popelkova_izuwrezk.docx

• Popis: 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.

Související projekty

• ESG reporting and its verification from the perspective of a statutory auditor