Chapter 6: A Study on Environment, Social and Governance Disclosure in the Case of the Packaging Sector in Romania

This study is based on actual legal requirements in Europe on disclosure of nonfinancial information and the principle of the United Nations Principles of Responsible Investment (UNPRI), reflecting environmental, social, and governance (ESG) commitment behavior from companies. Given that plastic pollution is the world’s biggest source of climate change, stakeholders want sustainable packaging and an ESG disclosure approach that creates value over the long run. The research aims to identify the critical factors that influence ESG reporting and contribute to Romanian packaging firms’ long-term financial success. Using the ideas of value creation process theory, a content analysis was done in the first research stage to examine sustainability/ESG reports from the five companies on their long-term value development process and the techniques they used. Second, the findings were verified for validity (credibility and reliability) using semi-structured interviews with Romanian ESG professionals. The research results, aligned with the literature, indicate that a strong business strategy integrated with ESG across the value chain, along with a multistakeholder and commitment-driven approach, is critical in creating long-term business value. Lastly, it is highly advised that reporting practitioners, sustainability leaders and policymakers of consumer goods packaging companies implement all the key determinants of ESG reporting as identified in this study to create long-term business value through ESG reporting by moving beyond compliance-driven strategy.