BEST PRACTICES IN SUSTAINABILITY REPORTING: ENHANCING FINANCIAL OUTCOMES

Abstract

Companies aiming to keep a competitive edge and boost their financial performance increasingly find sustainability reporting to be very important. Combining qualitative insights from business executives with quantitative data analysis, this research explores best practices in sustainability reporting and their impact on financial performance. Data point show that companies with high transparency ratings, active engagement of stakeholders, and congruence with world standards show superior financial performance. Strong sustainability policies obviously show improved key metrics like income development, profit margins, return on assets (ROA), and stock performance. Although the poll results underlined the importance of transparency and stakeholder participation, regression analysis confirmed a positive correlation between sustainability assessments and financial performance. Emphasizing the need of openness, stakeholder interaction, and global standards, the paper finishes with recommendations for businesses to improve their sustainability reporting strategies. These insights give companies aiming at sustainability a practical framework that at last supports long-term performance and value creation from their corporate strategy.