Greener profit? Analysing the relationship between ESG reports and their financial impact on the retail industry

Abstract

Sustainability has become a central theme in business strategies, particularly pertinent to the retail sector, identified with significant environmental impacts and extraordinarily complex social impacts. This thesis investigates the impact of ESG (Environmental, Social and Governance) reporting on the financial performance and competitive positioning of Finnish retail enterprises, with a special focus on the cases of S Group and K Group from 2020 to 2023. Employing a mixed-method approach, this study takes into account qualitative document analysis of ESG reports and semi-structured interviews to examine the extent to which ESG claims are translated into real actions and reflected in measurable financial consequences.