Decoding ESG Report Narratives: Unveiling Sustainable Supply Chain Insights and Impacts Through Textual Analysis

Yicheng Wang; Yingbin Peng; Chen Yang

doi:10.1002/csr.3079

Decoding ESG Report Narratives: Unveiling Sustainable Supply Chain Insights and Impacts Through Textual Analysis

Yicheng Wang^*, Yingbin Peng, Chen Yang

^*Corresponding author for this work

Xi'an Jiaotong-Liverpool University

Research output: Contribution to journal › Article › peer-review

Abstract

This study explores industry-specific sustainable supply chain (SSC) practices and their impact on firm value using textual analysis of 4791 ESG reports from S&P 500 companies. A novel SSC dictionary, developed using Word2Vec, highlights variations in SSC practices across eight dimensions—procurement, production, logistics, warehousing, distribution, transportation, retail, and supplier—across different industries. Regression analysis shows that emphasis on procurement and retail SSC practices positively correlates with firm value, with warehousing practices showing marginal significance. The research contributes to SSC literature by introducing a quantitative methodology linking SSC to corporate performance, offering practical insights for aligning supply chain sustainability with profitability.

Original language	English
Journal	Corporate Social Responsibility and Environmental Management
DOIs	https://doi.org/10.1002/csr.3079
Publication status	Accepted/In press - 2024

Keywords

ESG disclosure
firm value
sustainability
sustainable supply chain
textual analysis
Word2Vec

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1002/csr.3079

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title = "Decoding ESG Report Narratives: Unveiling Sustainable Supply Chain Insights and Impacts Through Textual Analysis",

abstract = "This study explores industry-specific sustainable supply chain (SSC) practices and their impact on firm value using textual analysis of 4791 ESG reports from S&P 500 companies. A novel SSC dictionary, developed using Word2Vec, highlights variations in SSC practices across eight dimensions—procurement, production, logistics, warehousing, distribution, transportation, retail, and supplier—across different industries. Regression analysis shows that emphasis on procurement and retail SSC practices positively correlates with firm value, with warehousing practices showing marginal significance. The research contributes to SSC literature by introducing a quantitative methodology linking SSC to corporate performance, offering practical insights for aligning supply chain sustainability with profitability.",

keywords = "ESG disclosure, firm value, sustainability, sustainable supply chain, textual analysis, Word2Vec",

author = "Yicheng Wang and Yingbin Peng and Chen Yang",

note = "Publisher Copyright: {\textcopyright} 2024 ERP Environment and John Wiley & Sons Ltd.",

year = "2024",

doi = "10.1002/csr.3079",

language = "English",

journal = "Corporate Social Responsibility and Environmental Management",

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AU - Peng, Yingbin

AU - Yang, Chen

PY - 2024

Y1 - 2024

N2 - This study explores industry-specific sustainable supply chain (SSC) practices and their impact on firm value using textual analysis of 4791 ESG reports from S&P 500 companies. A novel SSC dictionary, developed using Word2Vec, highlights variations in SSC practices across eight dimensions—procurement, production, logistics, warehousing, distribution, transportation, retail, and supplier—across different industries. Regression analysis shows that emphasis on procurement and retail SSC practices positively correlates with firm value, with warehousing practices showing marginal significance. The research contributes to SSC literature by introducing a quantitative methodology linking SSC to corporate performance, offering practical insights for aligning supply chain sustainability with profitability.

AB - This study explores industry-specific sustainable supply chain (SSC) practices and their impact on firm value using textual analysis of 4791 ESG reports from S&P 500 companies. A novel SSC dictionary, developed using Word2Vec, highlights variations in SSC practices across eight dimensions—procurement, production, logistics, warehousing, distribution, transportation, retail, and supplier—across different industries. Regression analysis shows that emphasis on procurement and retail SSC practices positively correlates with firm value, with warehousing practices showing marginal significance. The research contributes to SSC literature by introducing a quantitative methodology linking SSC to corporate performance, offering practical insights for aligning supply chain sustainability with profitability.

KW - ESG disclosure

KW - firm value

KW - sustainability

KW - sustainable supply chain

KW - textual analysis

KW - Word2Vec

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DO - 10.1002/csr.3079

M3 - Article

AN - SCOPUS:85212948083

SN - 1535-3958

JO - Corporate Social Responsibility and Environmental Management

JF - Corporate Social Responsibility and Environmental Management

ER -

Decoding ESG Report Narratives: Unveiling Sustainable Supply Chain Insights and Impacts Through Textual Analysis

Abstract

Keywords

UN SDGs

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