Sustainability Reporting Practice and Financial Performance of Deposit Money Banks (DMBs): A Pre-Post Analysis of Integrating ESG Disclosure into Corporate Reporting

This paper aims to examine the effect of sustainability reporting practices on the financial performance of selected banks listed on the Nigerian Stock Exchange before and after mandatory ESG disclosure. The study used six banks out of the 25 listed on the Nigerian Stock Exchange. The 16 parameters for reporting the score of sustainable performance based on social, environmental, and governance factors were employed. The study covered two time periods: before (2011-2015) and after mandatory ESG reporting requirements for Nigerian listed companies (2016-2021). Techniques such as paired sample testing and comparative analysis were used. Based on the findings of the study, it was concluded that sustainability reporting practice is a significant predictor of financial parameters in the pre-mandatory requirement period and that there is no significant difference in financial performance in the post-mandatory requirement period. Based on the findings, it was recommended that market regulators be given more power and a free hand to prosecute companies involved in ESG non-disclosure and that stiff penalties be imposed for non-compliance.