Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector

The research paper investigates the nexus between energy transition reporting practices and corporate efficiency of listed European companies from the agri-food sector. The study relies on key energy-related and financial indicators and logistic regression analysis conducted on 219 EU business entit...

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Main Author: Serhiy Zabolotnyy
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/21/5519
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author Serhiy Zabolotnyy
author_facet Serhiy Zabolotnyy
author_sort Serhiy Zabolotnyy
collection DOAJ
description The research paper investigates the nexus between energy transition reporting practices and corporate efficiency of listed European companies from the agri-food sector. The study relies on key energy-related and financial indicators and logistic regression analysis conducted on 219 EU business entities publishing their financial and non-financial reports between 2004 and 2023. Based on the distribution of financial metrics in the sample, we assumed that entities reporting data on energy transition, either partially or fully, could achieve higher profitability and simultaneously have lower liquidity than non-reporting companies. The panel data model indicated a strong relationship between the reporting status of a business entity, its revenue, and the time variable, demonstrating that the likelihood of providing information on energy transition was associated with the size of a company and increased systemically over time. However, further regression analysis revealed a lack of a persistent, significant relationship between the key financial indicators and the entities’ energy transition reporting status. Considering the substantial changes in the EU regulatory environment associated with introducing CSRD, we conclude that with increasing legal pressure over time, companies will gradually shift towards standardized industry-related reporting practices, resulting in more consistent and transparent evidence of their energy transition strategies.
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spelling doaj-art-f5a774947e4041eb9ed483729d9f95c42024-11-08T14:35:57ZengMDPI AGEnergies1996-10732024-11-011721551910.3390/en17215519Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food SectorSerhiy Zabolotnyy0Department of Finance, Institute of Economics and Finance, Warsaw University of Life Sciences-SGGW, Nowoursynowska 166, 02-787 Warsaw, PolandThe research paper investigates the nexus between energy transition reporting practices and corporate efficiency of listed European companies from the agri-food sector. The study relies on key energy-related and financial indicators and logistic regression analysis conducted on 219 EU business entities publishing their financial and non-financial reports between 2004 and 2023. Based on the distribution of financial metrics in the sample, we assumed that entities reporting data on energy transition, either partially or fully, could achieve higher profitability and simultaneously have lower liquidity than non-reporting companies. The panel data model indicated a strong relationship between the reporting status of a business entity, its revenue, and the time variable, demonstrating that the likelihood of providing information on energy transition was associated with the size of a company and increased systemically over time. However, further regression analysis revealed a lack of a persistent, significant relationship between the key financial indicators and the entities’ energy transition reporting status. Considering the substantial changes in the EU regulatory environment associated with introducing CSRD, we conclude that with increasing legal pressure over time, companies will gradually shift towards standardized industry-related reporting practices, resulting in more consistent and transparent evidence of their energy transition strategies.https://www.mdpi.com/1996-1073/17/21/5519energy transitionCSRDESRSefficiencyagri-food sector
spellingShingle Serhiy Zabolotnyy
Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
Energies
energy transition
CSRD
ESRS
efficiency
agri-food sector
title Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
title_full Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
title_fullStr Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
title_full_unstemmed Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
title_short Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector
title_sort investigating the nexus between energy transition reporting practices and corporate efficiency in the european agri food sector
topic energy transition
CSRD
ESRS
efficiency
agri-food sector
url https://www.mdpi.com/1996-1073/17/21/5519
work_keys_str_mv AT serhiyzabolotnyy investigatingthenexusbetweenenergytransitionreportingpracticesandcorporateefficiencyintheeuropeanagrifoodsector