Assessing the roles of environmental, social and governance reporting in manufacturing sector. Case study at Salima sugar

This study examines the influence of Environmental, Social, and Governance (ESG)
reporting on investment decisions at Salima Sugar, a prominent player in Malawi's
manufacturing sector. A mixed-methods approach was used, combining surveys and
interviews with 40 stakeholders. The findings reveal that ESG reporting positively impacts
investor confidence, with environmental reporting practices aligning with long-term
sustainability goals and social reporting enhancing trust and reputation. However, challenges
such as lack of regulatory guidelines, limited expertise, and high data verification costs
hinder effective ESG reporting. The study suggests that addressing these challenges and
improving transparency can enhance investor trust and long-term value, positioning Salima
Sugar as a leader in sustainable practices. Recommendations include establishing a clear ESG
reporting framework, investing in internal expertise, and leveraging technology to reduce
costs. The study's findings have implications for policymakers, practitioners, and future
researchers seeking to promote sustainable investment and corporate responsibility in
emerging markets.In recent years, Environmental, Social, and Governance (ESG) reporting has emerged as a
critical element influencing investment decision-making processes. The importance of ESG
disclosures is particularly pronounced in sectors with significant environmental footprints and
social responsibilities, such as the manufacturing sector (Gillan et al., 2021). Investors are
increasingly incorporating ESG considerations into their evaluations of corporate risk profiles,
sustainability trajectories, and long-term profitability potential (Eccles & Klimenko, 2019).
Despite global trends emphasizing ESG integration, the extent to which ESG reporting
shapes investment decisions in the manufacturing sector in Malawi remains inadequately
explored. Given the country's growing industrial base and pressing sustainability challenges,
understanding this dynamic is crucial.