Are Non-Listed Companies Exposed to a Relevant Burden when Complying with the CSRD? A Study of Disclosures and Financial Performance in the Italian Context
Are Non-Listed Companies Exposed to a Relevant Burden when Complying with the CSRD? A Study of Disclosures and Financial Performance in the Italian Context

Summary/Abstract: Aim: This study aims to assess the actual compliance burden imposed by the Corporate Sustainability Reporting Directive (CSRD) on large unlisted companies by analysing voluntary sustainability disclosures prior to mandatory adoption. It also investigates whether sustainability reporting is associated with financial performance in a non-listed context. Methodology: An exploratory content analysis was conducted on sustainability reports and corporate websites of 99 large Italian unlisted companies using a 94-item CSRD-aligned disclosure grid. Manually collected data were validated by ESG assurance professionals. The relationship between sustainability disclosure and financial performance was examined through multiple linear regression. Findings: The results indicate that CSRD compliance represents a substantial and uneven burden for large Italian unlisted companies. Disclosure levels varied widely across the companies and sustainability areas. Governance, planning, and performance disclosures are positively associated with profitability, whereas the disclosure of non-financial indicators was negatively related to income generation. Implications: The study provides early empirical evidence on CSRD readiness in unlisted companies and extends research on the ESG–financial performance nexus beyond listed settings. For practitioners, the findings identified critical disclosure gaps – especially in indicator-based reporting – offering guidance for businesses, assurance providers, and policymakers in prioritising compliance efforts and resource allocation. Originality/value: This study offers the first large-sample quantitative evidence on the CSRD compliance burden affecting large unlisted companies. It also contributes rare empirical insights into the relationship between ESG disclosure and financial performance in non-listed companies.

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