From Promises to Progress: How Companies Measure Up on Sustainability
Andersen’s work offers a practical framework for interpreting sustainability information and ESG ratings, classifying industries based on environmental and economic performance, and understanding the motivations, both of companies crafting sustainability strategies and of the users interpreting this information.
The motivation behind the research
Sustainable development was first defined as 'development that meets the needs of the present without compromising the ability of future generations to meet their own needs' (Brundtland Commission, 1987). Today, it is increasingly recognized that companies have a vital role to play in advancing sustainability. In response, firms are reporting more frequently on environmental, social, and governance (ESG) commitments. However, multiple stakeholders, investors, consumers, regulators, struggle to interpret this information and to gauge its implications for both sustainability and financial performance. Are firms genuinely working to achieve sustainable development, or are they simply signalling good intentions? Motivated by a desire to understand corporate sustainability strategies, assessment frameworks, and how users interpret this information, Andersen set out to uncover what real progress we can expect based on companies' reported commitments.
What are the results?
Andersen’s findings highlight that there is no one-size-fits-all approach to ESG measurement or its alignment with sustainable development. However, her research identifies key factors - such as issue salience, financial stability, and other firm and industry characteristics - that shape the relationship between ESG commitments, financial outcomes, and environmental progress. One of the most significant contributions of her dissertation is the demonstration that ESG ratings can be misleading when they conflate commitments (promises) with outcomes (actual performance). Her work reveals that when environmental commitments and outcomes are aggregated into a single score, firms with high emissions can still appear to perform well. Without fully understanding the composition of these ratings, the public, investors, and other stakeholders may be left with an inaccurate impression of a company’s true sustainability performance.
Importantly, Andersen’s research also identifies firms with the greatest potential to turn promises into progress: those operating in high-impact ('brown') industries that possess sufficient financial resources and clear, ambitious targets. These firms, when supported by internal capacity and external pressure, demonstrate a stronger likelihood of converting environmental commitments into real and measurable improvements. Her work highlights that focusing attention and incentives on these firms could yield the most substantive progress in sustainability efforts.
About Jorunn Irene Andersen
Jorunn Irene Andersen (Norway, 1992) is currently an assistant professor at Kristiania University of Applied Sciences in Oslo, Norway, where she is coordinating the BA in Sustainability and Business Development. On Thursday, June 26, 2025, at 1:30 PM, she will defend her dissertation titled 'Sustainability in Practice: Measuring and Assessing Sustainable Firm Performance' at the Faculty of Management, Department of Accounting and Finance at the Open University in Heerlen.
Promotors are Prof. Dr. Dennis Bams (Open University) and Dr. Roger Otten (Maastricht University). The defence can be attended live at the Open University in Heerlen and followed online via ou.nl/live.
Reference
World Commission on Environment and Development (1987). Our Common Future. Oxford University Press.