Corporate governance and energy sector sustainability performance disclosure

PurposeThe energy sector is one of the most important sectors with an impact on the environment, and therefore, sustainable performance in this sector is considered a sensitive issue for sustainability. It is, therefore, necessary to know how to address stakeholders' interest in sustainability through governance mechanisms. The purpose of this study is to look into the role of corporate governance (CG) on sustainable performance disclosure (SPD) in the energy sector.Design/methodology/approachThis study uses panel data covering the period 2019-2023 among 12 companies in the energy sector in Jordan. Fixed-effect regression models were estimated for board size, board independence, chief executive officer (CEO) duality, board diligence, board gender diversity, sustainability committee existence and sustainability disclosure. The data analysis tool of choice was a multiple regression approach because it was deemed appropriate. The disclosure index was created using global reporting initiative standards and provides the number and quality of disclosures on key sustainability indicators.FindingsThe study found a significant and positive relationship between board size, percentage of independent directors, board audit, board gender diversity, existence of sustainability committee and level of SPD. On the other hand, the study establishes that CEO duality has an inverse relationship with SPD.Practical implicationsThe findings of this study have significant implications for managers and corporate decision-makers in the energy sector. The findings affirm that the improved design of CG motivations and realizations conducive to robust measures of SPD necessitates effective CG.Originality/valueThe value of this applied study stems from the importance of SPD for various categories of stakeholders, and conducting such an applied study is crucial to improving the existing realization of the factors that can have a significant impact on the level of SPD in Jordanian energy sector companies. The results of this paper may be of procedural value to regulatory authorities and decision-makers.