Environmental Sustainability Performance Disclosure and Its Impact on Profitability in Listed Consumer Goods Manufacturing Firms in Nigeria

The inadequate disclosure of environmental sustainability performance by polluting firms has led to significant information asymmetry between corporations and stakeholders, which in turn has contributed to investor apathy, diminished economic success, and increased community opposition.This study examines the effects of environmental sustainability performance disclosure on the profitability of firms, specifically focusing on the consumer goods manufacturing sector in Nigeria.The research is anchored in Stakeholder Theory and adopts a correlational research design.Data were obtained from the annual reports of thirteen listed consumer goods manufacturing companies over a period of thirteen years (2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020)(2021)(2022)(2023)(2024).Feasible Generalized Least Squares (FGLS) regression analysis was employed to test the hypotheses.The results indicate that the disclosure of greenhouse gas (GHG) emissions reduction is positively associated with profitability.Similarly, the disclosure of environmental waste management practices is significantly related to improved corporate profitability.However, the disclosure of water management practices revealed a significant negative relationship with profitability.The findings suggest that the disclosure of environmental sustainability practices, such as GHG emissions reduction, waste management, and water consumption reduction, plays a crucial role in enhancing both environmental sustainability and long-term financial performance.While GHG reduction was found to have a direct financial benefit, waste management strategies necessitate a shift from compliance-based approaches to innovation-driven practices.Water management, on the other hand, requires better alignment with industry-specific realities to effectively contribute to profitability and sustainable growth.These findings underscore the importance of transparent environmental performance disclosure as a driver of both ecological sustainability and financial success for firms operating in the consumer goods manufacturing sector.