Articles
DOI DOI: 10.5281/zenodo.18485723

Beyond ESG Disclosure:Measuring Real-World Outcomes and Disclosure–Outcome Misalignment

Tima Bansal1
  1. 1 Western University, Ivey Business School, London, Canada

Abstract

Environmental, social, and governance (ESG) reporting has expanded rapidly across global capital markets. Despite this growth, persistent concerns remain that disclosure quality and ESG scores are imperfect proxies for real-world environmental and social outcomes. Disclosure reflects what firms say, not necessarily what they change. This study develops a transparent and replicable measurement framework that shifts ESG assessment from “ESG-as-disclosure” to “ESG-as-impact” by explicitly linking firm-level ESG disclosures to externally verifiable outcome indicators. The framework distinguishes three analytically separate layers: (i) disclosure and managerial inputs, (ii) operational outputs, and (iii) real-world outcomes. Building on theories of decoupling and greenwashing, the paper operationalizes disclosure–outcome misalignment as a measurable indicator of greenwashing risk. Using established disclosure standards and publicly available outcome datasets, the study provides a structured data architecture, validation logic, and reporting templates that enhance comparability, materiality, and auditability. The contribution is both methodological and practical: a rigorous approach for evaluating ESG performance beyond narrative reporting, without reliance on proprietary ESG ratings.

How to Cite

Bansal, T. (2025). Beyond ESG Disclosure:Measuring Real-World Outcomes and Disclosure–Outcome Misalignment. Transnational Academic Journal of Economics, 2(1), 105–119. https://doi.org/10.5281/zenodo.18485723
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