Different patterns of ESG reporting: the sustainability disclosure index of selected European cities

Abstract The study examines patterns of Environmental, Social, and Governance (ESG) reporting by European cities, focusing on how local governments disclose sustainability information in response to regulations such as the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive. It employs manual content analysis of ESG information from 15 C40 network cities based on an ESG disclosure index comprising 36 items grouped into criteria covering business models and ESG indicators. Cities were scored on disclosure presence, with normalized scores ensuring equal category weight. Results show variations in ESG reporting, with Scandinavian cities scoring the highest and Southern European cities the lowest. Environmental disclosures dominated, while social and governance aspects were less consistently reported. The study adds to public sector sustainability literature by highlighting how large European cities align with evolving EU regulations.