ESG disclosure as a proxy of port corporate communication and sustainable management strategy: An LDA approach

The contemporary port industry faces intense competition, compelling port authorities and operators to enhance efficiency and effectiveness as proxies for competitiveness. Environmental-Social-Governance (ESG) schemes have recently emerged as a means for ports to create value beyond core activities, engaging broader stakeholder groups. ESG encompasses environmental, social, and governance factors influencing a company's value creation and competitiveness. This paper examines the role of ESG reporting in enhancing corporate communication and sustainable strategic management in the port industry, focusing on case studies of the Piraeus Port Authority S.A. and Thessaloniki Port Authority the backbone of the Greek port system. Utilizing an innovative quantitative content analysis model, Latent Dirichlet Allocation (LDA), the study analyzes sustainability reports from 2019 to 2023. The findings reveal a shift towards more integrated and proactive sustainability strategies, with increased stakeholder engagement and digital communication. This study underscores the critical role of ESG reporting in shaping corporate communication and sustainable strategic management, highlighting the need for ongoing research to address evolving challenges and opportunities. Also, it unveils the aiming of ESG strategies of the two major Greek ports under the light of the engagement of private investors/port operators. As ports navigate the complexities of the modern business environment, embracing robust ESG practices will be essential for fostering long-term value creation and maintaining competitive advantage, especially in the Greek pot industry in which ESG adoption is at its early stages.