Evaluation and analysis of SDG reporting: evidence from Africa

Abstract

Purpose The 2030 Agenda and the sustainable development goals (SDG) have gained considerable attention in research and public debate. This calls for accounting research on the subject of SDG disclosure. Based on this premise, this paper aims to evaluate and analyze the extent of SDG reporting by 80 listed firms from 8 selected African countries for the period of 2016 to 2018. Design/methodology/approach The study adopts a content analysis and survey method to evaluate the extent of SDG reporting by the selected African countries. This paper conducted content analysis through the use of the PricewaterhouseCoopers (PwC) framework and Global Reporting Initiative (GRI) framework to gauge the extent of firms’ compliance with SDG reporting. Also, this paper uses the business reporting indicators for each SDG developed by GRI to determine the compliance level of the selected firms regarding SDG reporting. The survey was targeted at the big four audit firms (PwC, KPMG, Ernst and Young and Deloitte and Touche). Findings The evaluation of SDG disclosure by the 80 listed firms in Africa is still at a very low level except for South African firms. Also, the findings of the business reporting indicators for each SDG target show that most of the firms show little or no concern to report on SDG activities. The result of the research survey indicates that voluntary disclosure, lack of management commitment, lack of regulatory enforcement and cost implications account for low SDG disclosure by the selected African firms. Research limitations/implications This study fails to consider the qualitative research approach in determining the extent of SDG disclosure in Africa, as the study did not allow respondents to freely express their opinion on SDG disclosure, as a large part of the survey used close-ended questionnaires. Practical implications This study’s findings call for clear responsibility and a strong drive for SDG performance from corporate institutions in Africa. While the overall responsibility rests on the government, the actualization of SDG cannot be achieved without support from corporate organizations. The empirical approach used in this study emphasizes the need for corporate organizations to embrace sustainable practices and to integrate SDG information into their reporting cycle. Originality/value This study contributes to growing literature in the area of corporate reporting, sustainability reporting and SDG research in Africa and other emerging economies. Also, this study provides original insight into the contribution of accounting research toward the achievement of SDG.

Sustainable development goals (SDG) reporting: an analysis of disclosure

“…The relationship between SDG and management studies represents a new and not well explored field of study (Erin and Bamigboye, 2021). The relevance of the theme is connected to the opportunity for accounting scholars to provide further suggestions in order to favor the engagement with private sector's actors (Bebbington and Unerman, 2018).…”

“…Also, international organizations, regulatory institutions, standard-setters and professional bodies continuously seek ways to improve corporate information, especially on the issues of sustainability after the emergence of SDG in 2015. It is believed that the SDG reporting will advance the issue of sustainability activities in corporate annual reports (Bebbington and Larrinaga, 2014; Faisal et al ., 2015; Erin and Bamigboye, 2021). The emergence of SDG has given corporate organizations a good platform to incorporate sustainability issues in their corporate reports (Hak et al ., 2016; Olojede et al.…”

“…The SDG have succeeded the fairly successful MDGs, which wrapped up in 2015. One of the concerns of the MDGs is the lack of inclusion of the businesses – a concern which arguably appears to have been addressed in the SDG implementation process (Erin and Bamigboye, 2021).…”

Exploring sustainable development goals reporting practices: From symbolic to substantive approaches—Evidence from the energy sector

“…The interest in the business case for SDGs reporting has recently matured also among academics. Empirical studies investigating SDGs disclosure patterns have been conducted in different countries: Italy (Izzo et al, 2020;Pizzi et al, 2021), Spain (Curt o-Pagès et al, 2021Diaz-Sarachaga, 2021), Portugal (Fonseca & Carvalho, 2019), Australia (Subramaniam et al, 2019), Indonesia (Gunawan et al, 2020), the United Kingdom (Silva, 2021), India (Yu et al, 2020), Greece (Tsalis et al, 2020), Africa (Erin & Bamigboye, 2021) and worldwide (Heras-Saizarbitoria et al, 2022;van der Waal & Thijssens, 2020). Some studies focused on specific industries, such as real estate (Ionas ¸cu et al, 2020) or chemicals (Nechita et al, 2020).…”

Corporate governance and sustainability reporting quality: evidence from Nigeria

“…Similarly, in September 2012, the regulatory body in charge of the financial sector, the CBN, issued a circular directing banks, discount houses and development finance institutions to implement the Nigeria Sustainable Banking Principles (NSBP) (CBN, 2012; Oyewo and Isa, 2017; Erin and Bamigboye, 2021). The NSBP has eight principles; Principle 1 – Business Activities: Environmental and Social Risk Management. Principle 2 – Firms Business Operations: Environmental and Social Footprint. Principle 3 – Human Rights. Principle 4 – Women’s Economic Empowerment. Principle 5 – Financial Inclusion. Principle 6 – Environmental and Social Governance. Principle 7 – Capacity Building. Principle 8 – Collaborative Partnership. Principle 9 – Reporting. …”