20.500.12556/RUL-164442 Textual analysis of corporate sustainability reporting and corporate ESG scores This paper examines the evolution of environmental, social and governance (ESG) reporting by analysing a ten-year corpus of annual reports from FTSE 350 companies. Using BERTopic, an advanced topic modelling technique, we identify and subsequently cluster the most important ESG topics, providing significant insights into the reporting landscape. Our findings show how regulatory changes, such as the Non-Financial Reporting Directive, and major events like Covid-19, influence ESG topic prominence. The disclosure of ESG information is primarily determined by regulatory requirements. This is particularly evident in the fact that companies only disclose the diversity on the board, which is mandatory, but not the diversity and inclusion at other levels of the reporting organisation. Furthermore, our study examines the correlation between ESG scores and topic proportions, showing that extensive disclosure on topics like climate risk and stakeholder engagement is positively associated with higher ESG scores, whereas topics like executive remuneration show negative correlations. Our research contributes to the literature by offering a novel methodological approach to ESG analysis and provides insights into the gaps between reporting standards and practices, relevant for standard-setting bodies and regulators. financial capital sustainable development models business reports topic modelling ESG topics annual report ESG score CSR finančni kapital trajnostni razvoj modeli poslovna poročila true false true Angleški jezik Slovenski jezik Članek v reviji 2024-10-25 09:18:11 2024-10-25 09:18:16 2024-11-22 14:54:21 0000-00-00 00:00:00 2024 0 0 15 str. pt. B, art. 103669 Vol. 96 Nov. 2024 0000-00-00 Zaloznikova Objavljeno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 336 1057-5219 10.1016/j.irfa.2024.103669 212391683 1-s2.0-S105752192400601X-main.pdf 1-s2.0-S105752192400601X-main.pdf 1 21920EB45182B500D62479E1CE4FA29A 3a14464f4af4084047d6925d15f143943ea730eaa74d83336ed009a19518ae31 3d2e229c-92a1-11ef-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=194827 https://www.sciencedirect.com/science/article/pii/S105752192400601X 0 25927628-92a1-11ef-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=194826 Ekonomska fakulteta 0 0 0