A global study on the demographic drivers for corporate sustainability performance

Sammanfattning: Sustainability is a topic that has gained significant traction over the last decade. To ensure that we meet the needs of the present without compromising future generations' needs, this study examines the relationship between ESG (environmental, social and governmental) scores and external demographic pressure in an attempt to examine the relationship and a direction between the two. The primary purpose is to investigate whether external demographic pressure drives corporate sustainability. The study uses Age, Education, Gender and Income as variables for demographic pressure, where Age implies median age, Education tertiary attainment, Gender distribution of the sexes, and Income GNI per capita. Through utilizing a quantitative method, ESG scores have been collected from the Thomson Returns Eikon database, and for the demographic factors The United Nations Department of Economic and Social Affairs (UNDESA) and the World Bank have been used.  To produce a model that works globally, a global sample has been used, with the majority of the companies based in western countries. The theoretical models Behavioural Finance, Stakeholder Theory and Agency Theory have been used to analyse the underlying dynamics of the relationships between demographic pressure and corporate sustainability performance. The conclusion is that such a relationship exists, and more specifically, that all four variables used display statistically significant effects on ESG scores. However, our results diverge from previous research on corporate sustainability performance, suggesting that higher Age in a population increases ESG scores, while higher numbers of males to females, higher education level, and higher income level decreases corporate sustainability performance.  The conclusion of this study contributes to new knowledge of sustainability and an expanded understanding of the role of demographic factors in corporate sustainability. This further suggests that sustainability should be a more integrated part in companies and civil society.