Sustainability Practices and Corporate Performance: Evidence from Nigerian Quoted Consumer Goods Firms
Abstract
This paper aims to analyze the impact of sustainability practices on the corporate performance of consumer goods companies listed on the Nigerian Exchange Group. Specifically, it examines the individual and joint effects of environmental sustainability practices (ESP), corporate social responsibility (CSR), and ESG disclosure on three performance metrics: return on assets (ROA), market value, and revenue growth. The study adopts an ex post facto research design with a quantitative, panel data approach. A census sampling method was used, encompassing all 18 consumer goods firms listed on the Nigerian Exchange Group over a 10-year period (2015 2024), yielding 180 firm-year observations. Secondary data were sourced from audited annual reports, sustainability and ESG reports, and Nigerian Exchange Group publications. Fixed and random effects panel regression models were employed, incorporating firm size and leverage as control variables. A principal component analysis was also conducted to construct a composite corporate performance index. Descriptive statistics show moderate average ROA (7.42%) and ESG disclosure scores (48.92). The correlation matrix reveals significant positive associations between ESP and ROA (r = 0.412, p < 0.01) and between ESG disclosure and revenue growth (r = 0.418, p < 0.01). The panel regression results indicate that the Sustainability Composite Index (SCI) has a positive and highly significant effect on the Corporate Performance Index (β = 0.0428, p = 0.000), suggesting that the synergy of environmental sustainability, CSR, and ESG disclosure enhances corporate performance. The study concludes that sustainability practices, when integrated, positively influence corporate performance among Nigerian consumer goods firms. It contributes to the literature by disaggregating sustainability dimensions, incorporating market-based and growth metrics, and focusing on the post-2020 Nigerian regulatory context. The findings have practical implications for investors, policymakers, and corporate managers, reinforcing the business case for holistic sustainability strategies in emerging markets.