The Relationship between the Alignment of Sustainable Development Goals (SDGs) Disclosure within Industrial Sectors and Firm Profitability: A Case Study of Companies Listed on the Stock Exchange of Thailand

Abstract

This research studies the relationship between the alignment of Sustainable Development Goals (SDGs) disclosure within industrial sectors and the profitability of companies listed on the Stock Exchange of Thailand (SET) in the year 2022. Secondary data were collected from financial statements and annual reports (Form 56-1 One Report). A total of 503 samples were analyzed using descriptive statistics, correlation analysis, and multiple regression analysis. The independent variable, SDGs disclosure alignment, was measured by the percentage of disclosed SDGs that correspond to the top five most relevant SDGs within each industrial sector. The analysis shows a statistically significant positive relationship between SDGs disclosure alignment and return on assets (ROA). This result suggests that SDG disclosure should not be evaluated solely based on the number of SDGs disclosed, but rather on the relevance and appropriateness of each disclosed goal to the characteristics of the industry. Companies that align their SDG disclosures with their specific sectors tend to demonstrate more effective use of sustainability-related resources, which may contribute positively to their profitability.