Effective creation of ESG reporting using data from financial accounting in the food industry company

Abstract

Environmental, social, and governance (ESG) reports in the synergy of the accounting system of the company. In building a system for ESG reporting, it is necessary to comply with valid transnational and national levels and at the same time create a system that will be able to fulfil its tasks in the future. This study presents an analysis possibility of using the company's accounting system for the efficient creation of ESG reporting. The paper presents the focused on the investigation of factors that influence the tendency to using the financial data for effective ESG reporting. Next step of the conducted analysis was the estimation of individual model to investigate specific factors and to identify differences between selected companies of food industry in region of western Slovakia. We used Binary logit model for estimated, based on the data coming from questionary survey in selection company. In this study strongly significant variable DocFA with a positive effect on the dependent variable referred to the agreement of respondents to use documentation from financial accounting for effective ESG reporting. For instance, respondents from the selected western region of Slovakia in the field of food industry have an 82% higher chance of using this documentation for effective ESG reporting. Significant variable AccountS is strongly significant (p-value less than 0.01) in selected companies in western region of Slovakia in field of food industry, which has positive impact to use financial data for effective ESG reporting.

Keywords

• ESG reporting
• financial accounting
• accounting system
• binary logit model
• ESG preferences