Sustainability reporting and ESG performance in the utilities sector

In the last few years, many policymakers started implementing stricter rules about sustainability reporting in their jurisdictions. However, this process has been characterized by criticisms related to the potential mis-alignments between Environmental, Social and Governance factors (ESG) performance and sustainability reporting quality. This evidence is particularly relevant for the utilities sector because of the existence of reputational risks associated with their activities. The paper aims to contribute to the debate through novel insights about the nonlinear relationship between sustainability reporting quality and ESG performance in the utilities sector.