ESG reporting as an instrument of corporate communications in Latvia
Prof. Velga Vevere
University of Latvia, Riga, Latvia
Abstract: Environmental and social transparency has become a crucial aspect of corporate sustainability in recent years. Companies around the world are under pressure to disclose environmental (E), social (S) and governance (G) performance. The need to disclose ESG data is driven both by the stakeholders’ expectations for responsible business practices and regulatory requirements. This topic is highly relevant in Latvia as well, given recent EU directives (CSRD) that will soon mandate ESG reporting for more firms. Previous research shows that only a minority of Latvian companies provide sustainability information in line with international standards - only about 11% of surveyed companies reported sustainability data in line with recognized frameworks in 2022. Therefore, the current study aims to disclose gaps and good practices in sustainability reports presented by Latvian companies and develop a set of recommendations for ESG data disclosure. This issue is important because insufficient ESG transparency may prevent stakeholders from assessing corporate sustainability efforts and may limit the effectiveness of initiatives aimed at improving environmental and social performance. The research methods: a monographic method is applied to examine academic works, reports, and regulatory documents on sustainability reporting and ESG disclosure, creating the theoretical foundation; secondary data analysis is used to analyze publicly available data sources such as companies’ non-financial statements, sustainability reports, and prior studies or surveys related to ESG performance; content analysis is used to systematically review and evaluate the environmental and social information disclosed in Latvian companies’ annual reports, integrated and sustainability reports, and websites. The study finds that ESG reporting remains limited: only 23% of Latvia’s 100 largest companies issue a dedicated ESG report, and fewer than half disclose some sustainability data. Environmental metrics are typically reported with greater quantitative detail than social metrics. Recommendations include strengthening internal ESG data systems, adopting international standards (GRI, ESRS), and improving regulatory guidance and training.
Brief Biography of the Speaker:
Prof. Velga Vevere is specializing in communication, and
management studies. She is currently a professor at EKA University of
Applied Sciencesm University of Latvia.
She has taught a broad range of subjects in undergraduate, graduate,
and doctoral programs, including communication, leadership, marketing
communication, and research methodology. She has also served as a
guest professor at Turība University. Professor Vevere is recognized
as an expert by the Latvian Council of Science. She chaired the
Scientific Council of EKA University of Applied Sciences and has
contributed extensively to interdisciplinary research.