Sustainability Practices and Financial Performance in Listed Manufacturing Companies in Nigeria. (A comparative Analysis of Cadbury and Nestles)

Using Cadbury Nigeria Plc and Nestlé Nigeria Plc as case studies, this study examines the connection between stated Nigerian manufacturing companies’ financial performance and environmental sustainability measures. The study, which is based on stakeholder theory, uses an ex post facto design to assess whether sustainability measures affect two important financial metrics, Return on Assets (ROA) and Earnings Per Share (EPS), while adjusting for business size, liquidity, and leverage. Data from sustainability and annual reports covering 2015–2024 were taken out and subjected to panel-corrected standard errors (PCSEs), fixed effects, random effects, and pooled OLS regression models. PCSEs were required because diagnostic testing showed cross-sectional dependency and heteroskedasticity. The results show that while firm size and debt have little bearing on financial performance, environmental sustainability policies and liquidity have a large and beneficial impact. In terms of ROA and EPS, Nestlé did better than Cadbury, demonstrating a more deliberate incorporation of sustainability into its business practices. Both companies, however, showed only mediocre adherence to GRI4 (Global Reporting Initiative) guidelines. The findings validate stakeholder theory and confirm the significance of sustainability in raising firm value, but they also highlight how inadequate current financial models are at explaining the full range of sustainability’s effects. The report urges industry-wide adoption of comprehensive sustainability frameworks and suggests more robust legislative incentives for environmental compliance.