Challenges and Barriers to Sustainability Reporting in the Nigerian Context

Abstract

This study examines the challenges and barriers of sustainability reporting faced by reporting entities in the Nigerian context. To conduct the literature review more systematically, the systematic review method was employed. Therefore, this study reveals that firms are still facing significant barriers and challenges in reporting sustainability such as lack of knowledge and understanding of sustainability reporting; lack of integration of sustainability performance with incentives; lack of sustainability communication with various stakeholder groups, lack of standardization in reporting sustainability; lack of collective efforts for sustainability. The study further, suggested that firms’ sustainability initiatives are being delayed due to lack of government policies regarding the determination of social and environmental programs which was also part of the hurdles to effective sustainability reporting. It was concluded that those barriers and challenges to sustainability reporting can be group into individual factors which include managers’ mind set and willpower and managers’ knowledge and skills; institutional factors such as Global Reporting Initiative (GRI) guidelines/standards, sustainability reporting award schemes, and stakeholder pressure; and finally the organizational factors which comprise top management support, employee support and resistance, technical issues with data, organizational reputation, and organizational culture. Therefore, the responsibility for promoting sustainability issues lies with the collective efforts of both organizations and institutions such as responsible investors, NGOs, consumers, governments, and stock exchanges. If these are achieved, would provide effective sustainability reporting in the future.