ESG performance and disclosure: national composite indicators for monitoring sustainable growth conditions in the EU-27

ENSustainable growth is a major global concern due to environmental challenges, social and corporate governance matters. Identifying and analyzing key indicators can provide valuable insights into the critical factors affecting sustainability in the EU-27 countries. This paper analyzes environmental, social and governance national composite indicators for monitoring sustainable growth conditions in the EU-27. The authors develop a simplified algorithm based on the ESG index methodology and composite indicators theory. The three pillars of the ESG methodology are examined with a focus on the ten most valuable indicators in each pillar. A sub-objective is to verify what percentage of the results are consistent with the original approach. The data were collected for the EU-27 countries for 2020–2021. The study's main outcome is a simplified approach to measuring sustainability that is 81% consistent with previous calculations. In line with previous studies, Norway, Sweden, and Finland rank highest on the ESG index, while Cyprus, Bulgaria, Lithuania, and Greece rank the lowest. Keywords: composite indicators, DSG, ESG, non financial reporting, sustainable development.