Climate-Related Financial Disclosure and Sustainable Development Goal Performance of Listed Industrial Goods Companies in Nigeria

This study examined the relationship between climate-related financial disclosure and Sustainable Development Goal (SDG) performance of listed industrial goods companies in Nigeria. The increasing global emphasis on climate change, sustainability reporting, and the adoption of the International Sustainability Standards Board (ISSB) IFRS S1 and IFRS S2 standards has heightened the need for companies to disclose climate-related financial information capable of supporting sustainable development. The study specifically investigated the influence of climate governance disclosure, climate strategy disclosure, climate risk management disclosure, and climate metrics and targets disclosure on Sustainable Development Goal performance. An ex-post facto research design was adopted, utilizing panel data obtained from the audited annual reports and sustainability reports of ten listed industrial goods companies on the Nigerian Exchange Group over the period 2020–2025. Data were analyzed using descriptive statistics, Pearson correlation analysis, and panel regression techniques comprising pooled ordinary least squares, fixed effects, and random effects models. The Hausman Specification Test indicated that the Fixed Effects Model was the most appropriate estimator, while robust standard errors were employed to address heteroskedasticity and serial correlation. The findings revealed that climate governance disclosure, climate strategy disclosure, climate risk management disclosure, and climate metrics and targets disclosure each exerted a positive and statistically significant influence on Sustainable Development Goal performance. The results further indicated that firm size and profitability positively influenced SDG performance, whereas leverage exhibited a negative but statistically insignificant relationship. The study concludes that comprehensive climate-related financial disclosure enhances corporate transparency, strengthens stakeholder confidence, and significantly improves Sustainable Development Goal performance among listed industrial goods companies in Nigeria. The study recommends that companies strengthen climate governance structures, integrate climate considerations into strategic planning, improve climate risk management systems, and expand quantitative climate disclosures in line with ISSB IFRS S2 requirements. Regulatory authorities should also intensify the implementation and enforcement of international sustainability reporting standards to improve disclosure quality and accelerate the achievement of the Sustainable Development Goals.