The Challenge of Sustainable Development Goal Reporting: The First Evidence from Italian Listed Companies

Abstract

This research investigates the extent to which the voluntary disclosure of Sustainable Development Goals (SDGs), assumed to be the most recent innovation in social disclosures and corporate sustainability reporting, is diffused among Italian listed companies through different instruments of disclosure (voluntary or non-voluntary). Our findings reveal that SDGs awareness amongst the business community is high and that the majority of highly-traded, liquid, and highly-capitalized Italian companies have introduced SDGs in their disclosure and story-telling practices, while the exact nature and requirements of the SDGs, and the definitions of specific key performance indicators (KPIs) related to those goals, are still missing. Italian companies prefer using non-financial statements and sustainability reports to disclose information about their commitments to SDGs, and most of them started to report information about SDGs in 2016. Additionally, this research seeks to identify the significant differences between SDG reporters in different sectors, under the assumption that operating in a specific sector could significantly affect a company’s decision to disclose information on their SDGs. This research highlights, following the recent evolution of Corporate Social Responsibility (CSR) disclosure and sustainability reporting, the increasing relevance of SDGs in Italian companies’ disclosure practices and, at the same time, the gaps to be covered for their effective implementation.

Drivers of sustainability practices and contributions to sustainable development evident in sustainability reports of European mining companies

“…Sustainability reporting can influence corporate actions and consequently induce the implementation of the SDGs into business strategy [50] and be a significant driver of an organization's sustainability strategy [51]. However, previous research found that few companies had cited the SDGs in their reports [52,59]. Additionally, SDG reporting practices have been criticized for "rainbow washing", meaning that companies overuse SDG rainbow wheels focusing on style instead of content [59].…”

“…However, previous research found that few companies had cited the SDGs in their reports [52,59]. Additionally, SDG reporting practices have been criticized for "rainbow washing", meaning that companies overuse SDG rainbow wheels focusing on style instead of content [59]. Additionally, some authors emphasized that the reports do not explain how these Goals relate to one another or identify the drivers of the impacts [53,54].…”

“…In a comparability analysis of 12 GRI reports from mining companies, Boiral and Henri [58] revealed that due to the qualitative characteristics of many GRI indicators, general information, use of different scales, and the lack of data, it was difficult to compare sustainability performance between the reports. Additionally, the contribution to the SDGs included in sustainability reports is often limited with general descriptions but lacks implementation in terms of business models and the development of indicators related to the SDGs [59,60]. However, to reach a higher level of maturity in sustainability reporting, organizations require more time [61].…”

Sustainable Development and European Banks: A Non-Financial Disclosure Analysis

“…Comparative studies, aimed at identifying the priority SDGs in the different industrial sectors, geographical areas, and different categories of subjects called upon to support the achievement of the SDGs (private sector, public sector, academic community, etc. [47,48]. 4.…”

The B Corp Movement: A Systematic Literature Review

“…In the academic field, scientific research on the subject is still scarce. In fact, there are hardly any studies that analyze how the SDGs contribute to the creation of business value [9] or how the achievement of the SDGs is being supported by the private sector [5,10]. This is why a detailed analysis on how the private sector is contributing to sustainable development is needed.…”