Organisational and professional challenges amid the evolution of sustainability reporting: a theoretical framework and an agenda for future research

Abstract

Purpose This paper aims to trace subsequent steps of the sustainability reporting evolution in terms of changes in the organisation fields and professional jurisdictions involved. As such, it highlights the (interrelated) organisational and professional challenges associated with the progressive incorporation of “sustainability” within corporate reporting. Design/methodology/approach The paper draws on Suddaby and Viale’s (2011) theorisation of how professionals reshape organisational fields to highlight how organisational spaces, actors, rules and professional capital evolve alongside the incorporation of sustainability within corporate reporting. Findings The paper shows organisational spaces, actors, rules and professional capital mobilised during the recent evolution of sustainability reporting, starting from a period in which there was no space for sustainability, to more recent periods in which sustainability gained increasing momentum beyond initial niches, and culminating in more integrated forms of sustainability reporting. Research limitations/implications Although the analysis is limited to empirical evidence collected by prior research and practice on sustainability reporting, the paper offers a view to imagine how the incorporation of sustainability within corporate reporting relies on and affects organisational fields and professional jurisdictions. Originality/value The paper offers a lens to interpret corporate and professional challenges associated with the more recent evolutions of sustainability reporting practice and standard setting. It also allows framing the papers accepted in the special issue on “new challenges in sustainability reporting” and concludes by suggesting an agenda for future research.

Integrated reporting and analyst behaviour in diverse institutional settings

“…The paper also has implications for practitioners in their understanding of the role played by IR for the capital market in diverse institutional settings. In particular, our findings offer insights for policymakers, standard setters and regulators involved in enhancing the quality and enforcement of nonfinancial disclosures to stimulate organizations to behave responsibly (Lai and Stacchezzini, 2021). While we are not in a position to comment on the impact of mandatory integrated report release, with some scholars recommending a rapid transition to mandatory nonfinancial reporting (Adams, 2020), our evidence should discourage the promotion of IR as a voluntary disclosure in contexts of weak institutional enforcement.…”

Financial analysts' reaction to voluntary integrated reporting: cross-sectional variation in institutional enforcement contexts

“…Second, even the companies that will be obliged to report according to the new European standards, and in particular, listed companies, will likely have to pay attention to (or to even comply with) the extra information needs caused by the current evolution of the reporting standards (Lai and Stacchezzini, 2021) because of two factors. The first is the next issue of a reporting standard by the International Sustainability Standards Board established by the IFRS Foundation.…”

Carbon Accounting Measurement with Digital Non-Financial Corporate Reporting and a Comparison to European Automotive Companies Statements

“…Their disclosed business models reach a stage 4 (accommodative) strategy, as stand-alone or integrated carbon reports were published. The time of adaptation precedes the currently relevant regulatory context [52], i.e., the first carbon report publication date (that should not be taken into account) is before 2016. Companies may disclose the information either because it is financially significant (so they have a legal obligation to disclose it) or because it differentiates them from competitors in a positive way for stakeholders.…”

“…In April 2021, the technological recommendations were published along with a timetable for the development of current sustainability reporting standards [61]. The regulation process aims to review and develop the current European Non-Financial Reporting Directive (NFRD) active since 2018 [52]. In Appendix A, a detailed description was provided of the relevant sustainability standards and disclosures to be used and adopted by future legislation.…”