Greening the Bottom Line: Exploring the Impact of Sustainability Disclosure on Financial Performance

Purpose: This study analyses the relationship between sustainability disclosure quality and financial indicators among mining companies listed on the Johannesburg Stock Exchange (JSE) in South Africa. Design/Methodology/Approach: Disclosure quality was assessed using an index based on the Global Reporting Initiative (GRI) Mining and Metals Sector Supplement. The analysis focused on four financial indicators: liquidity, leverage, profitability, and company size. Findings: Results show significant positive relationships between disclosure quality and both leverage and profitability, while no significant link was found with liquidity or company size. This highlights the role of transparent, high-quality disclosures in influencing certain financial aspects of mining companies. Originality/Value: By applying a sector-specific disclosure index over a decade of reports, this study contributes to the literature on the financial relevance of sustainability reporting in an emerging-market context. Practical and Social Implications: The findings suggest that early adoption of sustainability reporting regulations can strengthen transparency, improve financing outcomes, and foster accountability in the South African mining industry. Research Implications: Future studies should expand to other sectors, include broader financial measures, and assess the effects of evolving sustainability standards.