The challenges of sustainability reporting and their management: the case of Estra

Abstract

Purpose The purpose of this paper is to investigate the challenges that companies could face over time when dealing with sustainability reporting (SR) and focusses on potential mechanisms they may adopt to cope with them. Design/methodology/approach The investigation is conducted adopting the theoretical framework proposed by Baret and Helfrich (2018) and using a longitudinal case study. Findings The authors found that the challenges that gradually arose induced the evolution of SR. Dissemination, employees’ involvement, managerial commitment and routinization/institutionalization of reporting practices appeared to be useful mechanisms to face the related challenges. Conversely, the authors found that stakeholders’ engagement scarcely affected SR. Furthermore, the legislation impacted the extent and quality of disclosed contents and fostered the standardization of the reporting process. Practical implications In analysing how Estra faced SR challenges, this paper emphasizes the mechanisms that can be used to properly manage them, in a gradual and holistic way. Hence, this study offers a useful example for companies approaching SR for the first time. Originality/value The authors adopt a holistic theoretical perspective providing evidence on how SR development within a company depends on the continuous and integrated management of its multiple challenges, also suggesting that its interdependencies with the definition and execution of sustainability should be exploited.

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

“…In the study by Patrice De Micco, Loredana Rinaldi, Gianluca Vitale, Sebastiano Cupertino and Maria Pia Maraghini (De Micco et al , 2021), the overall problem of the challenges of sustainability reporting is directly faced, starting from generally accepted accounting knowledge that recognises that corporate performance must be assessed not only on the basis of financial results but also by considering the effects on the social and environmental context. However, the paper reminds us that pursuing the purpose of effective sustainability reporting is not an easy task, as it involves considerable challenges (in terms of understanding, managing and communicating NFI) and related mechanisms (dissemination of sustainability principles, employee involvement, routinisation and institutionalisation of sustainability reporting practices and management commitment) that must be implemented.…”

Performance and (non) mandatory disclosure: the moderating role of the Directive 2014/95/EU

“…In this context, scholars pointed out that the EU Directive produced several challenges mainly related to the collection and disclosure of new data and information (such as GHGs emissions, supply chain assessment, anti-corruption policies, etc.) necessary to meet institutional requirements and expectations (Aureli et al , 2020; De Micco et al , 2021).…”

“…At the same time, companies, in adapting to the new institutional pressures, have had to incur costs (see e.g. Jayaraman and Wu, 2019) related to activities such as data collection, external consultancy and auditing (De Micco et al , 2021). Following these reflections, in the recent literature on the subject (see e.g.…”

Stakeholder engagement in sustainability reporting by Fortune Global 500 companies: a call for embeddedness

“…Instead, topics are co-determined by the report preparers and the stakeholders (Puroila and Mäkelä, 2019). Even though it is paramount to translate stakeholder engagement practices into disclosures, embedding stakeholder engagement in sustainability reporting by confining it to a stakeholder engagement section in the sustainability report seems to be insufficient to deliver complete and useful information (Adams, 2004;De Micco et al, 2021;Journeault et al, 2021;Manetti, 2011). Linking both disclosures indicates that companies are aware of the sustainability concerns of their stakeholder groups and strive to address those concerns.…”

“…In the absence of stakeholder engagement, sustainability reports tend to be compiled by selecting and presenting positive information to demonstrate favourable performances, while excluding any unfavourable aspects (Gray and Milne, 2002;Miles and Ringham, 2020), thus potentially resulting in incomplete reports (Adams, 2004;Journeault et al, 2021). These potentially provide less useful information to interested users (De Micco et al, 2021;Manetti, 2011).…”