Disclosure Information on Environmental, Social and Governance ( <scp>ESG</scp> ) Criteria in Latin America

ABSTRACT Disclosure of Environmental, Social, and Governance (ESG) information is important for companies seeking to balance their financial and non‐financial performance, enhancing consumer trust, creating shareholder value, and promoting sustainable corporate development. This study empirically analyzes the level of ESG disclosure among publicly traded companies in Latin America between 2014 and 2023. An ESG index is proposed based on major international standards; this index was applied through content analysis to 300 listed companies from Argentina, Brazil, Chile, Colombia, Mexico, and Peru, resulting in 3000 firm‐year observations. The empirical analysis has adopted several descriptive measurements such as mean, ANOVA tests, minimums, maximums, and effect sizes (Hedges' g), providing greater analytical depth. The results reveal a growing trend in ESG disclosures in Latin America, although there are significant differences across countries. Brazil shows the highest levels of ESG compliance, followed by Mexico, Chile, and Argentina, which also show increasing trends. Colombia and Peru show recent progress, although with greater heterogeneity. These findings highlight the novelty of examining ESG disclosure in one of the least studied regions in literature. Results evidence a trend toward greater transparency, although challenges remain regarding consistency, depth, and standardization in accordance with the context.