A Comparative Study of Sustainability Disclosure Practices of India and USA

Compiling and submitting sustainable development reports is a key area for reforming corporate reporting in light of the implementation of the Sustainable Development Goals. In recent years, the share of companies that report sustainable development and corporate social responsibility has grown significantly. Thus, the study of the definition of the conceptual apparatus is important. The article aims to study the quantitative and qualitative structure of the documentary flow of scientific periodicals, the main areas of research, and development trends and. It also presents the results of a systematic review of publications on “sustainability reporting”. The study used bibliometric analysis of scientific periodicals from the Scopus scientometric database between 2011–2021. The scientific papers selected by the keyword “sustainability reporting” were exported for processing in the VOSviewer and R (bibliometrix package) computer programs. Based on the results of quantitative analysis, 625 publications were accepted, most of which were scientific articles. The main areas of research on sustainability reporting in accounting are sustainable development, sustainability, decision‑making, sustainability reporting, and accountability. The study also made it possible to identify the authors and research schools that have made the most significant contribution to this topic, and to establish geographical clusters in the context of countries around the world that work closely with each other and the highest‑rated journals. The originality of this study is that it helps to create a conceptual framework. It should guide the definition of future research, and it is designed to provide qualitative new insight into the role of sustainable development reporting. The article provides an opportunity to fill the gaps in quality research on sustainable development reporting. The main conclusions of this article will help researchers to expand their knowledge in this area through retrospective analysis of the research results.

Sustainability reporting has become increasingly crucial for businesses worldwide, communicating environmental, social, and governance (ESG) performance to stakeholders. Despite the growing importance of sustainability reporting, there remains a gap in understanding how financial indicators influence the disclosure process, particularly in Vietnamese enterprises. This paper aims to address this gap by investigating the influence of financial indicators on the sustainability reporting practices of Vietnamese companies. Employing a mixed-methods approach, combining a quantitative analysis of financial data with a qualitative assessment of sustainability reports, the research seeks to uncover the nuanced relationship between financial performance metrics and the quality and extent of sustainability disclosures. The research was conducted to identify, evaluate, and measure financial factors affecting the quality of companies’ sustainability reports in Vietnam. The research is based on scoring the sustainable development reports of the top 100 listed joint stock companies on the HOSE—Ho Chi Minh City Stock Exchange. Based on the research model of Dissanayake, in the case of Vietnam, we build a scoring model for the sustainable development report based on GRI standards and add additional criteria appropriate to the situation of each listed company on the Vietnam stock exchange. Based on the research overview, our team tested hypotheses related to the short-term current ratio, total asset turnover ratio (AT), return on equity ratio (ROE), and debt-to-equity ratio (DE). The empirical results show that the AT and ROE significantly positively affect the sustainability reports; the DE hurts the sustainability reports. The findings are expected to provide valuable insights into the factors shaping sustainability reporting practices in Vietnam and contribute to the existing literature on corporate disclosure and sustainability.

Given the growing importance of sustainable development and Ukraine’s integration into the European economic area, high-quality and comprehensive sustainability reporting is critical for the banking sector. The study aimed to assess the completeness of sustainability disclosures in the non-financial reporting of Ukrainian banks, to identify challenges and opportunities for improving the quality of such information to achieve positive effects at both the micro and macroeconomic levels. To achieve this goal, the case study method was used, which involved a comprehensive analysis of the websites of all Ukrainian banks to study their non-financial reporting. An in-depth analysis was conducted to determine the availability and quality of disclosed information on environmental, social and governance (ESG) factors. The study results showed that Ukrainian banks are only beginning to adopt sustainability reporting. The disclosed sustainability information is largely descriptive, lacking quantitative or financial data, and is often heterogeneous and unstructured. Even banks that position themselves as socially and environmentally oriented do not fully disclose sustainability risks or provide comprehensive information in the context of sustainable development goals. Only 35% of Ukrainian banks submit a “Sustainable Development Report” as part of their management report and only 45% of these banks address all ESG factors in the report. It has been demonstrated that, despite significant challenges in complying with the requirements of the Corporate Sustainability Reporting Directive, which remains voluntary for Ukrainian banks, adopting these standards is essential. Doing so will improve the profitability and transparency of banks’ operations, strengthen investor confidence, and create a more stable financial system in Ukraine. The urgent need for Ukrainian banks to take a more proactive and comprehensive approach to sustainability reporting and to prepare for the requirements of the future regulatory environment was emphasised

In the modern world, the issue of achieving a sustainable economic development model is becoming more and more urgent. One of its components is compliance with the Goal of sustainable development by companies and verification by state authorities and independent auditors of companies in matters of environmental sustainability. Thus, consideration of modern methods of submission and audit of sustainable development reports (SDR), analysis of opportunities for their improvement becomes relevant. In this work, attention is paid to companies engaged in retail trade, taking into account the peculiarities that they face when submitting the SDR. The purpose of the research was to conduct an analysis of the most common methods of reporting on sustainable development and to develop an effective model (and recommendations for it) for auditing and analyzing sustainable development reporting. Modeling became the main method when writing the paper, taking into account the developed model of analysis and verification of the SDR. The article proposed a new model of verification of non-financial information in sustainability reporting and its graphical display in the audit report. On its basis, it becomes possible to build a new methodology for the audit of the SDR. In addition, the most common international methods of SDR were analyzed, namely the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC). The authors concluded that the GRI is the most universal of the three, while the SASB is focused only on investors. IIRC, being similar to both described above, is an intermediate option. Nevertheless, submission according to the SASB system is the most effective for trade networks, taking into account the peculiarities of the functioning of this type of companies and the level of their influence on the external environment. The results of the conducted research and the data presented in the article make it possible to evaluate the modern methods of submitting financial statements in a new way and provide a basis for building new standards for the audit of these reports.

Over the last years, sustainable development has become one of the major issues that all global organizations are facing. The Global Reporting Initiative, located in the Netherlands and considered the leading authority world-wide, has developed what is currently considered the “common framework for sustainability reporting”. The latest version of their reporting guidelines called G3 contains detailed instructions and standards on how to prepare sustainability reports. By using G3 guidelines, corporations show a strong commitment of continuous improvement of their sustainability reporting practices. The G3 guidelines are increasingly adopted by many global corporations and organizations. At present, more than 700 organizations voluntarily publish a sustainability report according to G3 guidelines. For the first time, this empirical study investigates if the better performing and/or governed corporations prepare their sustainability reports according to the G3 guidelines. The goal of this study is to determine if there are significant differences with regard to size, financial performance, capital structure, and corporate governance between firms that publish a G3 sustainability report to those that don’t. Therefore, quantitative and qualitative variables of 124 randomly selected G3 reporting and non-G3 reporting corporations from 25 countries were analyzed. The results of this analysis show that corporations with the characteristics of being located in Europe, and/or being active in the energy or producing sector, and/or with a higher profit margin are more likely to produce high quality sustainability reports. Corporations with a higher long-term growth rate, on the other hand, are less likely to produce sustainability reports. The results of this unique study contribute directly to the knowledge of corporations providing voluntary CSR information in form of quality sustainability reports and the importance of the development of globally accepted sustainability reporting standards.

PurposeThe purpose of the study is to investigate the factors that influence the adoption of new sustainability reporting (SDG) and external assurance (EXTA) practices. This study also examines the relationship between sustainability reporting activity and corporate economic performance for a sample of 99 companies in Gulf Cooperation Council (GCC) countries that addressed SDGs in their sustainability reports published in 2019.Design/methodology/approachUsing a two-stage analysis, this study examines how firms’ characteristics and corporate governance variables affect SDG and economic performance, as well as the firm’s decision to adopt EXTA statements for a sample of companies in that addressed SDGs in their sustainability reports published in 2019. The authors collected data from the Global Reporting Initiative’s (GRI) Sustainability Disclosure database and the Bureau van Dijk for Orbis database.FindingsThe results show that the variables firm size, profitability, big 4 auditors and government ownership significantly affect SDG and economic performance. The results also reveal that firms operating in the manufacturing sector are positively correlated with SDG and the firm’s decision to adopt EXTA statements. Furthermore, the results indicate that board independence positively affects SDGs and EXTA.Research limitations/implicationsThe results can be particularly relevant and timely in helping large GCC companies promote their engagement to sustainable development practices by adopting more sustainable long-term strategies and policies. The findings could also guide managers in the strategic direction to identify firms’ characteristics and corporate governance features essential to promote sustainability reporting, an increasingly important performance indicator for investors and to enhance their confidence in the capital market. The results may also have practical implications to policymakers and other regulators in GCC countries to define effective frameworks that promote sustainable development reports and the use of EXTA.Originality/valueThe results make significant contributions by providing new insights to the existing literature on sustainability reporting in emerging markets by examining a unique perspective on the influence of firms’ characteristics and corporate governance features on the adoption of new sustainability reporting practices. The authors further add to the previous literature on the relationship between a firm’s economic performance and sustainable reporting by providing evidence from large companies in GCC countries, which might benefit from the adoption of multiple conceptual lenses, in this case, legitimacy and stakeholder theories. Lastly, through the empirical findings, this study provides economic validity to the 2018 joint initiative of the GRI and the United Nations Global Compact to strengthen corporate actions to achieve the United Nations SDGs.

Sustainability reporting is a critical process through which companies disclose environmental, social, and governance (ESG) goals and communicate progress toward achieving them. As a strategic tool for improving transparency and corporate accountability, SDRs serve to inform stakeholders about a company’s commitment to sustainable development. This study investigates the determinants of Sustainable Development Report (SDR) disclosure among companies listed on the Vietnamese stock market between 2020 and 2022. By integrating both internal factors (such as firm size, profitability, and financial leverage) and external factors (including industry sector and ownership structure), the research provides a comprehensive examination of the key drivers of SDR disclosure in an emerging market context. A major contribution of this study is its identification of industry-specific influences on SDR disclosure, highlighting that companies in environmentally sensitive sectors—such as energy, mining, and manufacturing—are more likely to disclose sustainability information due to higher societal and regulatory pressures. Additionally, the study introduces the role of fixed assets as a significant determinant of SDR disclosure, an aspect that has been largely overlooked in previous literature. The research also emphasizes the importance of ownership structure, particularly state and foreign ownership, in shaping the likelihood and quality of SDR disclosure. Using a combination of quantitative and qualitative research methods, this study analyzes data from 90 companies and offers empirical insights into how these factors interact and influence SDR practices in Vietnam. The findings contribute to the literature by offering new perspectives on the factors driving SDR disclosure in emerging economies. Moreover, this study provides practical recommendations for policymakers and business managers to improve sustainability reporting practices, thereby fostering greater corporate transparency and aligning Vietnam's practices with international sustainability standards.

Using firm size as a moderating factor, this study looks at how profitability, the board of directors, and the audit committee affect sustainability report disclosure. It stems from rising deforestation rates, which have intensified regulatory and stakeholder pressures and encouraged firms to enhance sustainability reporting as corporate accountability, despite conflicting findings in prior research. This study focuses on companies listed on the SRI-KEHATI Index during the 2022-2024 period, which reflects regulatory developments in sustainability reporting. Using a quantitative methodology, panel data from financial, sustainability, and annual reports of 12 corporations chosen by purposive sampling were analyzed. Panel data and Moderated Regression Analysis (MRA) using EViews 13 are used in this regression analysis. The results show that the audit committee, board of directors, and profitability have no partial influence on the disclosure of sustainability reports. Nonetheless, it was discovered that firm size had a negative moderating effect on the association between the board of directors and sustainability reporting and a positive moderating effect on the relationship between profitability and sustainability reporting. Firm size moderates the effect of audit committees insignificantly. This study concludes that Firm size is an important factor in determining sustainability disclosure practices. The findings indicate that, based on the sampled SRI-KEHATI companies during the 2022-2024 period, firm size is empirically associated with the extent of sustainability information disclosure. Companies are advised to optimize governance and pay attention to operational scale in improving the quality of sustainability disclosure.

Orientation: Companies are under ever-increasing pressure from both internal and external stakeholders to consider the environmental and social impacts of their operations and to mitigate these impacts. This necessitates an investigation into the effect of sustainability initiatives on the financial performance (FP) of a company.Research purpose: The study analysed the relationship between sustainability performance and FP in South African listed companies.Motivation for the study: Some South African listed companies acknowledge in their sustainability reports that there is a link between sustainability development and long-term shareholder value. This implies that FP is linked to sustainable development performance. This relationship has not been researched for South African listed companies and therefore needs to be investigated.Research design, approach and method: A similar research method was used as for an international study. Forty-five listed South African companies were selected as the sample. Their sustainable development reports were used for analysis. Data were analysed with the use of content and a canonical correlation analysis.Main findings: The results of the study revealed that an overall positive relationship exists between sustainability performance and FP. Practical implications: South African companies that have a high involvement and focus on specific sustainable development initiatives that are integrated into overall sustainable development strategy can deliver improved FP for the organisation and deliver long-term value to its shareholders.Contribution: Six sustainable development aspects were found to be significantly correlated with improved FP and if incorporated into a company’s sustainable development strategy can lead to increased successes.

Purpose This paper aims to analyse sustainability reporting practices and the influences of local and global norms for sustainability reporting in the Indo-Pacific region. A comprehensive sustainability reporting index is developed to benchmark company reporting against major global reporting frameworks and local frameworks. Design/methodology/approach The content analysis was conducted on 2019/20 and 2020/21 sustainability and annual reports produced by the top 50 listed companies in four distinctive countries in the Indo-Pacific region: Indonesia, the Philippines, Sri Lanka and Bangladesh. A total of 249 reports were collected and analysed. Findings Through the lens of Integrative Social Contract Theory (ISCT), this study reveals that issues garnering global attention, which are also included in the local standards, are most likely to be reported, especially in the social dimensions related to employee health and well-being, as well as diversity and equity. While companies are keeping up with the global standards related to sustainability issues, the presence and comprehensiveness of key local frameworks significantly influence the extent of sustainability reporting in emerging Indo-Pacific economies. However, certain aspects of reporting, such as the implementation and training of the OHS system, gender diversity in leadership and renewable energy use, are not covered by the local frameworks but receive considerable attention in corporate reporting practice. These aspects have been integrated into the ethical principles that companies consider as crucial ethical norms, or hypernorms, irrespective of local influences. Practical implications The substantial impact of local expectations also suggests that global sustainability reporting guidelines may need to better incorporate the nuanced complexities of local or country-specific situations and challenges faced by companies. In addition, while Indo-Pacific companies are actively engaging with critical hypernorms related to workplace safety, equal leadership opportunities for women and clean energy, more attention and support are needed for equally important areas, such as age diversity and the circular economy, as companies embrace the global momentum. Originality/value Previous research on sustainability reporting in the Indo-Pacific region is patchy in both volume and scope, which is symptomatic of limited access to data and the slower uptake of the practice in developing countries. However, the growing economic and geopolitical importance of this region means that it is an important context to explore. This research takes a cross-country approach to examining sustainability reporting in the region, aiming to benchmark company practices against global and local frameworks. It reveals an integrative approach that companies in this region have adopted to harmonise global standards with the diverse array of local reporting norms and standards.

PurposeThe purpose of this study is to investigate empirically what affects Global Reporting Initiative (GRI)-based sustainability reporting and its relationship with firm performance in the aviation industry between 2006 and 2015.Design/methodology/approachThe authors derived data from the GRI Sustainability Disclosure Database and Thomson Reuters EIKON; from the former, they downloaded GRI-based reports, and from the latter, they obtained financial data. The authors performed four-level analysis – report existence, report count, application level of report and firm performance –using various regression models (i.e. logistic regression, Poisson regression, ordered logistic regression and ordinary least squares regression).FindingsFirst, the authors based the analysis on the existence of GRI-based sustainability reports, which showed that firm size and leverage are positively associated with sustainability reporting. Contrary to expectations, ownership was negatively associated. Furthermore, free cash flow per share, growth and profitability do not have significant effects on sustainability reporting, in contrast to expectations. Subsequent analysis was based on report count (number of total published reports within the examination period) and application levels of reports. Compared to the preceding analysis, there were no notable surprises. In addition, we found evidence that growth is negatively associated with application levels of reports (partially supported). Thus, report existence, report count and application level results largely confirm each other. Finally, the authors tested the effect of sustainability reporting on firm performance, which did not produce significant results. Thus, in the aviation industry, sustainability reporting does not play a significant role in enhancing firm performance.Practical implicationsFirst, the findings show that larger and highly leveraged aviation firms can reduce agency and legitimacy costs through sustainability reporting. Surprisingly, the same assumption did not hold for ownership structure as the firms with diffused ownership base tend not to publish sustainability reports. Thus, boards are advised to establish and improve monitoring mechanisms in these types of firms. Second, although the number of aviation companies publishing separate sustainability reports has increased significantly over the years, almost half of the companies are not still producing sustainability reports. Hence, if the aviation industry believes the merits of engaging in sustainability issues and sincerely desires to enhance its sustainability reporting practices, the authors can suggest the following initiatives. Boards might encourage companies to incorporate sustainability issues into company operations by assigning the necessary financial and human resources. The boards might also establish a separate sustainability committee or department, which could focus on sustainability issues and reporting practices. Regulatory bodies could also encourage aviation companies to act in a socially and environmentally responsible manner by proposing legal requirements and providing guidance.Social implicationsRelevant civil organisations and environmental activists might undertake more active roles to enhance awareness of sustainability issues in the aviation industry.Originality/valueMost of the prior studies did not focus on standalone GRI-based sustainability reports, and they were conducted on limited samples and not the aviation industry in particular. This study aims to fill these gaps empirically by establishing testable hypotheses and attempting to demonstrate the validity of theoretical relationships in a wide range of data and among aviation companies worldwide. In this sense, this study is unique in what it undertakes. This study also tests whether sustainability reporting impacts firm value in the aviation industry which, to the best of the authors’ knowledge, has not been examined in prior studies to this extent.

Sustainability reporting is one of the tools that contribute to incorporating sustainable development in the design of extractive operations (i.e., “Design for Sustainability”), and the demand for sustainability reports is increasing due to the increased focus on sustainable development and sustainable financing efforts. The extractive industries are believed to have unique strengths to contribute to achieving the Sustainable Development Goals. Nonetheless, companies are expected to be transparent and accountable not only to investors but to all stakeholders, including communities, suppliers, clients, employees, and governments. Therefore, extractive industries require effective sustainability accounting and reporting to transition and contribute to sustainable development. Through a data-driven approach, this paper examines the scope and consistency of sustainability indicators used in the sustainability reports of eight oil and gas and eight mining companies from 2012 to 2018. Through content analysis and relevant statistical methods, we analyze the ways in which companies reported on their contributions to sustainable development, with a focus on indicators used and trends over time both within each industry and between industries. We demonstrate that extractive industries’ sustainability reporting practices are not consistent over time and that internal issues are better represented than external issues, in particular transportation and supply chain issues. Furthermore, while there are similar trends across the industries in terms of social and environmental indicator reporting, there are significant differences in economic reporting. We conclude that although both industries have established sustainability reporting practices, there are trends that demonstrate what companies are focusing on more, as well as areas for improvement. We see this as an initial step for conceptualizing how these industries can more objectively, consistently, and effectively assess and contribute to sustainable development.

Higher education institutions and universities have recently started to publish their sustainability and corporate responsibility reports. Yet, due to digitalisation and the benefits of digital reporting, websites offer organisations novel opportunities to communicate more updated, timely and interactive information than a periodic sustainability report. However, we know little about sustainability reporting practice within universities and their use of online communication. This study examines the relationship between sustainability reporting practices and web-based communication practices in Italian universities. We employed a qualitative enquire and content analysis of the sustainability web pages of Italian public universities by analysing their content and updates and their relationship with their adoption of sustainability reporting. Our results suggest there are risks to web-based media being used to replace sustainability reporting, resulting in a deinstitutionalising effect for sustainability reporting. This study contributes to the literature on sustainability reporting and disclosure in universities by exploring web-based university communication on sustainability issues and stimulating the debate on replacing sustainability reports with more timely and interactive forms of communication.

The Directive of the European Parliament and Council from December 14, 2022 No. 2022/2464/EU on corporate sustainability reporting and the adoption of the European Sustainability Reporting Standards (ESRS) require that business entities and audit firms adapt their organizational processes of reporting and verifications to the new requirements. Ukraine demonstrates its propensity to the European choice by joining the strategies on the way towards Sustainable Development Goals. Hence, an important challenge for domestic enterprises is learning the sustainability reporting requirements, and for domestic auditors it is mastering the techniques for assurance engagements on this reporting. The article contains a review and systematization of the requirements of European legal acts on sustainability reporting, with detailing the structure of report in compliance with ESRS 1; a review of the Recommendations of the Committee of European Auditing Oversight Bodies on assurance engagements and main challenges faced by audit firms in implementing European standards for sustainability reporting, as well as opportunities opened by this practice. The definitions of terms “reasonable assurance” and “limited assurance” were examined. The author analyzed the need for adapting the auditing procedures to new requirements. For the limited assurance engagement, the following procedures were outlined: questioning of business entity’s staff, analytical substantive procedures, tests of control measures, assessment of the evidence from external (alternative) sources. Organizational approaches to the limited assurance engagement on sustainability were proposed, the phases in determining the impact materiality were outlined. A structure of the report on limited assurance on sustainability to be made by the auditor / independent practical specialist was developed. The author’s propositions can be used as a framework for ensuring quality of assurance engagements performed on legal grounds or on request of investors or other stakeholders. European innovations in the sustainable development field, while charging audit firms with a heavy responsibility, open up before them new perspectives and new markets, enhance the auditors’ role in ensuring the resilience and transparency of companies, foster new skills and competences in the domain of sustainability audit.

Reporting on sustainable development has traditionally been a part of the management report. However, after the year 2000 many companies started to prepare separate report on sustainable development based on the current reporting framework. Giving that quality of sustainable information was not at the expected level, based on the fact that the sustainable reports were prepared voluntarily by companies, European Commission passed the Directive 2014/95/EU which serves as amending Directive 2013/34/EU. The Directive 2014/95/EU states that entities with more than 500 employees have an obligation to report certain non-financial information as a supplement to the management report. Otherwise stated, the Directive requires that under the specified condition, entities prepare the sustainable development report based on one among many contemporary frameworks. Research conducted on the entities whose shares are traded at the Belgrade Stock Exchange shows that Serbian companies prepare superficial reports, focusing more on the form than the content and usefulness of this information reported on the surface of the management report. The research shows also that development of sustainable reporting in Serbia is at a very low level. It seems that only one company from the Belex 15 index prepares the separate sustainable report based on GRI standards. Taking into consideration that the practice of adequate disclosure of non-financial information is missing in Serbia, sustained by the inadequate mindset of investors that do not support the importance of this information, the application of this newly passed Directive which is going to be operationalized in the Company Law in Serbia or the Law on Accounting, require Serbian companies to invest great effort in order to prepare this report.