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Do firms practise what they preach? Corporate performance-communication decoupling on environmental SDGs and the impact of sustainability-oriented governance mechanisms

V. Palea,Silvia Gordano,A. Migliavacca

Published 2025 in Sustainability Accounting, Management and Policy Journal

ABSTRACT

Purpose The study aims to investigate the decoupling between corporate performance and communication in relation to environmental sustainable development goals (SDGs) and the role of sustainability-oriented corporate governance (CG) in promoting their alignment and enhancing corporate contribution. Design/methodology/approach The authors focus on an international sample of listed companies over the period 2015–2022. The authors map firms’ SDG performance-communication behaviours and conduct logistic regressions to examine what CG mechanisms are associated with an alignment between performance and communication. Findings The results highlight a widespread decoupling between SDG performance and communication. Many companies have SDG-relevant performance data but lack SDG communication or show a discrepancy between measurable and claimed SDGs. The presence of stakeholder engagement practices, a sustainability committee and sustainability assurance are significantly associated with performance-communication alignment and better contribution to the SDGs. Practical implications The study provides support for policy and regulatory interventions to address decoupling by mapping companies’ SDG performance and communication behaviours at the international level and analysing which CG mechanisms express a higher likelihood of alignment between performance and communication, thereby enhancing corporate contribution to the SDGs. Social implications Progress towards SDGs requires companies to engage in meaningful social-impact actions and transparent disclosure. The study highlights the widespread decoupling between SDG performance and communication behaviours and suggests CG mechanisms that can enhance corporate commitment to achieving the SDGs. Originality/value The authors introduce an ad hoc measure to detect decoupling between performance and communication for SDGs, based on the United Nations (UN) Conference on Trade and Development guidelines. This is also the first study to examine the role of sustainability-oriented CG mechanisms in aligning performance and communication in the specific context of the UN SDGs.

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