Let’s Talk ESG: The Extent and Form of ESG Disclosures in Conference Calls
Abstract
To date it is unclear, in which extent and form executives disclose ESG issues in interactive, spontaneous settings such as conference calls. Using a large dataset of aligned text and audio sentences from US earnings conference calls between 2016 and 2021, we document a growing share of ESG disclosures in such calls. ESG disclosures are most pronounced in industries exposed to environmental and social issues. Furthermore, our analysis reveals that firms' ESG communication varies across different sections of the conference call. In the presentation segment, managers address ESG issues with a more positive tone—both verbally and vocally—compared to non-ESG topics. They also use fewer words associated with uncertainty during the presentation and Q&A sections when discussing ESG matters. Interestingly, in the Q&A portion, executives communicate ESG topics with notable differences in delivery, including a slower speech rate, lower vocal pitch, and reduced speech volume.