Abstract

The aim of the research was to examine the effect of sustainability reporting (SR) on firm performance within the pharmaceuticals and chemicals sector in Bangladesh, using the Global Reporting Initiative (GRI) standards (200, 300, and 400 series). A pooled ordinary least squares (OLS) regression model was used in this quantitative research design. Three SR measures were constructed based on the GRI framework with secondary data of twenty-eight organizations. The study captures the period between 2019 and 2024 (168 firm-year observations). This study analyzes how Economic Reporting Index (ERI), Environmental Reporting Index (ENRI), and Social Reporting Index (SRI) reporting influences operational (ROA) and financial (ROE) performance. Control variables include firm size, leverage, and age, which are firm-specific characteristics. A significant positive relationship is observed between economic, environmental, and social reporting practices and ROA and ROE. Among them, environmental reporting exhibits the strongest influence on both performance measures, particularly on ROE (β = 1.544, p < 0.01). The generalizability of this study may be impacted, as the sample is exclusively focused on the pharmaceuticals sector of Bangladesh. Index scores built with manual content analysis may include subjective judgments by the author. The study can assist policymakers and corporate leaders to prioritize and improve sustainability disclosures. This understandability generates measurable value with improved stakeholder engagement and legitimacy. This study contributes to the limited body of research examining the relationship between SR practices and firm performance in the pharmaceuticals and chemicals sector of Bangladesh, employing the detailed GRI 200, 300, and 400 frameworks.