The Relationship Between Sustainability Reporting Quality and Access to Corporate Financing Opportunities

Posted: Sep 15, 2024

• Charlotte Jones
• Chloe Adams
• Chloe Green

Abstract

This research addresses a critical gap in understanding how the qualitative aspects of sustainability reporting—specifically the depth, transparency, and strategic alignment of disclosures—affect corporate access to diverse financing instruments. While previous literature has established correlations between ESG performance and financial metrics, the mechanisms through which reporting quality translates into tangible financing advantages remain inadequately explored. The study introduces a novel methodological framework that integrates advanced computational linguistics, network theory, and quantum-inspired optimization techniques to examine how specific qualitative dimensions of sustainability reporting differentially influence access to various types of corporate financing, threshold effects and non-linear relationships, and how companies can optimize their reporting strategies.