The Price of Reporting: How Monetization of Sustainability Information Affects the Perception of Reporting Appropriateness

As discrepâncias existentes entre o Projeto de Lei nº4148∕2008 e o Princípio 10, que dispõe acerca do compromisso dos Estados em garantir o acesso à informação ambiental, geram a necessidade de reflexões sobre os reais paradigmas brasileiros frente à tal compromisso, assim como a sustentabilidade informacional enquanto pressuposto para a concretização de direitos. Assim, objetiva-se de modo geral, analisar as disposições pertinentes ao Princípio 10, as perspectivas da Declaração sobre o Princípio 10 na América Latina e no Caribe e averiguar os fundamentos do Projeto de Lei nº 4148∕2008, sob a perspectiva da sustentabilidade informacional. Após pretende-se especificadamente, delinear as contraposições entre os objetivos internacionais e o referido projeto de lei. Busca-se responder a indagação: Os fundamentos que levaram o Projeto de Lei nº. 4148∕2008 à apreciação do Congresso Nacional e sua aprovação na Câmara dos Deputados, podem ser considerados como contraposição aos compromissos internacionais assumidos pelo Brasil, no que diz respeito à informação ambiental sustentável, consubstanciando-se em um retrocesso normativo? A metodologia empregada possui como Teoria de Base e Abordagem a perspectiva sistêmico-complexa. Os procedimentos são pesquisa bibliográfica e documental. A técnica empregada é construção de fichamentos e resumos. Conclusivamente, vislumbra-se que o Brasil vem adotando paradigmas contraditórios quanto ao direito à informação ambiental, os quais necessitam ser melhor delineados, sob pena dessas contrariedades consubstanciarem-se em retrocesso normativo.

This study intends to investigate the impact of sustainability information on the level of firm’s risk. This study uses 103 firms-years observation of public listed companies in Indonesia during 2012 to 2018. Ordinary least squares regression analysis is employed to tested the hypotheses. ESG scores Bloomberg is used as an indicator of sustainability reporting. The theory used in this study is Signaling theory, which is an action taken by the company to provide instructions for investors on how to view the companies prospects. The findings indicate that social information can decrease the level of firm’s risk. Additionally, environmental and governance information have a negative impact on systematic risk only. Neither environmental nor governance information have an impact on non-systematic risk and total risk. This study contributes to the practical implications, especially on how to consider sustainability information on investment’s valuation models. This study also gives a fruitful insight to the literature by giving empirical evidence on the relationship between sustainability information and corporate’s risk.

Purpose This study explores the use of digital tools to support the sharing of sustainability information in the transition towards sustainable supply chain management in food supply chains. Design/methodology/approach The qualitative study reports on a Swedish food supply network, consisting of interviews with retailers/restaurants, wholesalers, and farmers/processors. By applying the analytical lens of responsibilisation, the abductive study reveals the complexities and barriers in transitioning to a sustainable food industry with the help of digital tools. Findings The findings demonstrate that perceived responsibility for corporate sustainability was limited to the national legislative framework. This limitation is evidence of an evaded regime of responsibilisation across supply chain actors. Additionally, the use of digital tools to support sustainability information sharing was largely absent in strategic orientations. This selective or withheld sustainability information translated into a gatekeeping mechanism that potentially hinders collective efforts to achieve sustainability. Practical implications The findings indicate that Swedish food actors are currently in a waiting position regarding the use of digital tools to promote sustainability information sharing. More specifically, industry actors perceive the need for an updated regulatory sustainability framework that supports a faster, digitally supported transition towards a sustainable food industry. Policymakers should be more proactive to incentivise industry actors to develop and adopt digital tools promoting corporate sustainability. Originality/value Responding to the call for more research into the empirical reality of supply chain actors and their approaches towards digitalisation and sustainability, this study bridges the gap between conceptual studies and practice. Furthermore, this study refines the theory of responsibilisation by shedding light on the underlying mechanisms of sharing sustainability information within a food supply network. It suggests that there exists an evaded regime of responsibilisation whereby governmental agencies are assigned the greatest responsibility to drive corporate sustainability, and, in the absence of such regulatory requirements, the sharing of sustainability information is limited.

Consumers are increasingly focused on making sustainable food choices, necessitating transparent and trusted systems for providing sustainability information. This can be implemented, for instance, through application of traceability systems that “carry” sustainability information about production and distribution. Currently, the literature on traceability mainly addresses consumer perceptions regarding the benefits of traceability concerning food safety and recalls. This research assessed consumers’ perceptions of the benefits of tracing food sustainability information in relation to purchase decisions. Data were collected using online surveys in China (n = 1515) and the UK (n = 1656). Path analysis indicated that higher perceived benefits of tracing sustainability information had small positive impacts on purchase intentions in both countries, with these being more pronounced for traced beef compared to milk and apples. The impacts of perceived environmental benefits on purchase intentions were partially mediated by perceptions of improved food safety and quality. This indirect influence was more prominent among UK respondents, implying potentially stronger safety and quality “halo” effects associated with environmental sustainability information compared to Chinese respondents. Stronger pro-environmental attitudes and greater perceived environmental threats linked to food production correlated with higher perceived environmental benefits of tracing food sustainability information and purchase intentions for traced foods in both countries. Positive correlations between pro-environmental attitudes and perceived environmental threats were only observed for UK respondents, suggesting that environmental issues related to food production might be more integrated into the general environmental attitudes of UK respondents. Implications for marketing strategies and policymaking are proposed considering diverse consumer responses to traced foods between the UK and China, food categories, and socio-demographic groups.

Purpose With the enforcement of the Corporate Sustainability Reporting Directive (CSRD), many companies within the European Union will face assurance obligations for sustainability information, which will lead to a significant increase in demand for sustainability information assurance. This study aims to identify the institutionalisation of sustainability information assurance from the perspective of assurance providers. Design/methodology/approach The study draws evidence from semi-structured interviews with 23 people from sustainability information assurance providers involved in the assurance of sustainability information based in Austria and Germany. The data analysis was carried out using a thematic analysis approach. Findings The findings indicate that the new obligations exert significant institutional pressure for sustainability assurance providers, necessitating action or institutional work in various areas such as establishing required competencies and ensuring adequate personnel resources. However, the findings also show that assurance providers have not yet taken as active a role in the institutionalisation process as the institutional theory perspective or the high regulatory pressure would suggest and that there is still room for institutional work. Originality/value Studies on the institutionalisation of the assurance of sustainability information have thus far focused on voluntary settings. In contrast, given the CSRD, this study focuses on the institutionalisation of the assurance of sustainability information in a mandatory environment, which has implications for the legitimation or institutional work of the assurance providers.

Sustainability-oriented decision-making requires adequate information and dedicated information technology support. However, integrating economic, social and environmental information requires a new understanding of how data is collected and shared among stakeholders. Ensuring the quality of sustainable information will depend on capabilities to collect and analyze large-scale data. While the potential benefits of digital technologies and sustainability have been widely publicized in the cutting-edge literature, little is known about the analytical capabilities of big data and sustainable information. This study aims to examine the prominence of big data analytical capabilities for sustainable information quality in an emerging market, in this case, Brazil. A scalar-type questionnaire was used to collect primary data from Brazilian multinational companies. The results indicate that big data analytical capabilities are substantive for sustainable information quality. This study is original, fills a gap in the literature and makes significant contributions: (a) sheds light on the prominence of big data analytical capabilities for sustainable information quality (b) signals the relevance of intangible capabilities; (c) serves as a guide for managers in deciding on priority capabilities to improve the quality of sustainable information directed to stakeholders; (d) ex-tends existing studies on analytical capabilities of big data and sustainable information quality; (e) shows that big data analytical capabilities bring benefits to support sustainable information quality in emerging markets; and finally (f) this research contributes to the literature on sustainable information and digital trans-formation with emerging technologies.

In the context of recurrent ecological and societal crises, the European institutions are committed to fostering sustainable development that meets the needs of present and future generations, while providing new opportunities for employment, investment and economic growth. These commitments are the guiding principle of European policies and strategies in terms of financing sustainable growth, green transition, and building an economy at the service of citizens. They have been gradually transposed into a large number of European regulations, including those related to sustainability disclosure by certain categories of economic and financial actors. The significance of the paradigm shift fuels the reflection on the relationship between these new regulations and the social reality, in which and upon which they must act. The new regulations referring to are especially: Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services; Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Taxonomy Regulation); Directive (EU) 2022/2464 of the European Parliament and of the Council amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting. As part of the European and international sustainability concerns, this article is a reflection paper on the developments, notably conceptual, axiological and substantive, generated by the Directive (EU) 2022/2464, and their translation into legal and practical innovations. Based on an extensive review of the relevant literature and European legislation, as well as on content analysis and secondary analysis of numerous scientific studies in the field, authors’ contribution focuses on the meaning and implications of the switch from 'non-financial information' to 'sustainability information', as well as on the new relationship between the law and the social reality created by Directive (EU) 2022/2464. The authors assume that such clarifications are a prerequisite for the successful transformation of certain professions significantly affected by this Directive, including those of financial analysts and auditors. This requires, at the same time, upstream changes of university curricula and continuing education in this area, as well as in research programs.

PurposeThe paper aims to provide companies with a better understanding of the needs of institutional investors to improve the disclosure of sustainability information by companies. The study investigates the changed information needs of institutional investors resulting from the Sustainable Finance Disclosure Regulation (SFDR).Design/methodology/approachThis study uses an internet-based survey instrument amongst institutional investors to gain insights into their needs regarding sustainability information. The authors received 155 responses in total and use descriptive statistics and t-tests to analyse the survey data.FindingsThe results demonstrate that the implementation of the SFDR challenges institutional investors, as it affects their decision process. Additionally, the findings still indicate a lack of available corporate sustainability information, making it even more challenging for institutional investors to make appropriate investment decisions. Respondents suggest that information on climate-related risks is more important than the European Union (EU) Taxonomy metrics for meeting the SFDR requirements.Research limitations/implicationsThe findings are mainly restricted to the opinion of European investors. However, the evidence contributes to the existing literature by investigating institutional investors' information needs in the new regulatory landscape.Practical implicationsAs the study provides insights into institutional investors' needs, reporting companies recognise the relevance of transparently providing sustainability information to be further considered in the investment process of institutional investors despite the regulation. The findings can help regulators develop uniform and global sustainability reporting standards.Originality/valueThis paper is the first to provide evidence on sustainability information requested on the institutional investors' side. The survey gathers primary data from professional investment members unavailable in databases or reports.

Sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable projects. To guide the transformation towards a sustainable and inclusive economy, the United Nations in 2015 developed the 2030 Agenda for Sustainable Development. However, measuring the impact that sustainable investments have on their environmental targets remains challenging. There is a risk that investors may become reluctant to invest at the scale necessary to mitigate climate change, especially if policy action to address climate change is lagging. Only with accurate and adequately standardized reporting of climate risks in financial statements can investors discern projects’ actual exposures to climate- related financial risks. It is against this backdrop that the study fathomed to assess the state of sustainable finance in projects, to assess the role of financial institutions in sustainable finance and to assess policy issues in sustainable finance in projects. The study adopted desk review also known as Meta-analysis method to extract information concerning sustainable finance in infrastructure projects with subsets on the state of sustainable finance in projects, the role of financial institutions in sustainable finance and policy issues in sustainable finance in projects. The study observed that new financial products and services with ESG have been incorporated into general lending, insurance and investment strategies. A number of new regulatory and legislative regulations have been invented by government or other auditing financial bodies (the European Union and the Capital Market Commission) and have been compulsorily or voluntarily adopted in order to classify and evaluate the weight of the environmental, social and sustainable information in the capital market. Banks are adjusting their lending policies by giving incentives on loan pricing for sustainable projects by adopting less carbon-intensive technologies. On policy issues in sustainable finance, IMF conducts the analysis of risks and vulnerabilities and advising its members on macro-financial policies regarding sustainable finance which has stimulated the private sector capital investment on sustainable projects. Equally, UNEP through its resource efficiency programme offer countries the service of reviewing their policy and regulatory environment for the financing system and developing sustainable finance roadmaps, and assisting central banks, regulators on how to best improve the regulatory framework of domestic financial markets to shape the way and supporting multi-country policy initiatives at sub-regional, regional and global level. In conclusion, sustainable finance is well developed in the international capital markets of Europe, USA, Japan and Australia while in Africa the idea is still nascent and requires the guidance of international monetary and non-monetary institutions to stimulate the financial markets to adjust to sustainable finance initiatives. Further, there is a significant lack of official, regulatory or binding legal standards, for the taxonomy, the evaluation and the notification of environmental, social and corporate governance information in the capital market. The study recommends that: Financial stakeholders should design a holistic taxonomy for the long-term evaluation and notification of the sustainable financial risk models; Sufficient regulatory safeguards should be enacted in every financial product that will satisfy the demand for a clearer sustainable evaluation; Financial instruments and credit rating should be indexed against ESG factors; In parallel with the global initiatives inspired by the United Nations, lending institutions should undertake actions with regard to increasing the level of social responsibility; Lenders insist on information disclosure on how institutional investors and asset managers integrate ESG factors in their risk processes; The capital stock markets should trade Green financial instruments such as green bonds, green loans, green venture capital, green credit guarantee and green insurance on the counter; Entrench PPP Models for resource mobilization and risk sharing and enhance awareness creation and publicity on sustainable finance benefits and operations should be enhanced.

Purpose: There is need for specialization on individual categories of sustainability information disclosure. An attempt has been made in this study to make a comparison between the environmental and social categories of sustainability disclosure. Methodology: Guided by the G4 sustainability reporting guidelines, environmentally sensitive companies in the Nigerian economy were analyzed for 6 years (2009-2014). Separate assessments and comparisons were made between environmental reporting and social reporting on the impact, influence and significance of their relationships using Stata13SE analytical tool. Findings: The results shows that firms performed better on social reporting than on environmental reporting in terms of higher sustainability disclosure rates and significant relationships. Research Implications: The current trend of reporting sustainability information disclosure under both social and environmental reporting is encouraging considering the fact that disclosure on sustainability issues in Nigeria is voluntary. Practical Implications: Firms in environmentally sensitive sectors are disclosing sustainability information than expected. Originality/Value: The uniqueness in comparing sustainability disclosures between environmental information and social information.

PurposeThis paper aims to examine the extent to which sustainability information unfavorably impacts consumers’ behavior in the case of luxury. In particular, it explores the effect of social and environmental attributes on the perceived quality.Design/methodology/approachA between-subject experimental design involving 973 French and Saudi consumers has been conducted.FindingsThe results indicate that sustainability information negatively impacts the perceived quality of luxury products. However, this result varies regarding the consumers’ country of origin. While no significant effect was observed in the case of French respondents, Saudi consumers lower the evaluation of quality when social information is provided. In addition, the negative effect of sustainability information is moderated by the consumers’ degree of liking of luxury and by the brand corporate social responsibility image.Research limitations/implicationsThis research fills a gap occurred in the previous literature. In effect, limited studies examined perceptions of the association between luxury and sustainability. In addition, it enriches the limited literature on sustainable consumption in the context of developing countries. However, further studies should focus on specific dimensions of quality and examine different sustainable practices and luxury goods.Practical implicationsFrom a practical point of view, this study suggests new applications with respect to the link between luxury and sustainability.Originality/valueNo study to date, as per the authors’ knowledge, has investigated empirically the impact of sustainability information on the perceived quality of luxury products. Contrary to the literature indicating a positive effect of sustainable attributes on consumers’ behavior, this study confirms the incompatibility between luxury and sustainability.

This paper explores how employee quality affects companies’ actions in terms of environmental protection and sustainable development. We use the proportions of the workforce with three education levels as proxies for employee quality and examine their respective impacts on three dimensions of corporate environmental sustainability: (1) reporting, (2) quality and standardization, and (3) attention and initiative. We investigate over 1300 firms listed in Chinese stock markets from 2006, the year when Chinese firms first released environmental issues and the Chinese regulatory divisions first announced a guideline, to 2021. The results indicate the following: (a) employee quality is positively associated with the reporting of corporate environmental sustainability, (b) companies with more educated employees are more likely to provide environmental and sustainable information with high standards and quality, and (c) companies with more educated employees are more likely to release environmental and sustainable information in solo reports as a reflection of the corporate attention on and initiative in environmental sustainability. Moreover, we find that employees at higher education levels have a stronger impact on corporate environmental sustainability. This paper contributes to the literature on human capital and environmental management.

The concept of sustainability has become an important phenomenon globally with many organisations being affected by the heightened awareness in sustainability. Organisations are more aware of the importance of promoting sustainability in all areas of operations. This is no different in the higher education sector, with a number of Higher Education Institutions (HEIs) playing a leading role in promoting sustainable initiatives. Effectively managing these initiatives however can be a complex task and requires data and information from multiple aspects of operations. In an HEI, operating sustainably means ensuring financial sustainability, social sustainability, environmental sustainability and educational sustainability. In order to manage sustainability effectively, HEIs require an integrated tool that can provide information on all areas of sustainability.

Energy efficiency is one of the critical aspects, because the hotel sector has significant energy consumption and has an impact on environmental information. Energy efficiency helps reduce operational costs. By reducing excessive energy consumption, hotels can set a good example of responsible and sustainable business practices. It is important to understand the factors that affect energy efficiency. Some of the relevant factors are knowledge sharing, risk perception, and environmental information. This study aims to analyze the effect of knowledge sharing, risk perception, and environmental information factors on energy efficiency in the hospitality industry. The research method used in this study is a quantitative method with a survey approach. The number of samples used in this study were 176 hotel managers in Indonesia. Questionnaires were distributed to respondents using a Likert scale of 1 to 7. Data were analyzed using the Partial Least Square (PLS) method using SmartPLS software. The research results conclude that knowledge sharing, perceived risk, and environmental information have a significant influence on energy efficiency in the hospitality industry. Well-informed consumers tend to be more aware of the impact of their decisions and actions on environmental information, so they are more likely to choose hotels that adopt sustainable and energy efficient practices. In addition, the perception of risk also affects energy efficiency in the hospitality industry. Consumers who perceive risks associated with low sustainability or negative environmental information impacts are less likely to choose the hotel. Environmental information factors also play an important role in energy efficiency. Hotels that have an environment that supports and facilitates sustainable practices have the potential to achieve higher energy efficiency.

PurposeSustainability research has become important than ever, due to the visible effects of business operations on the environment, and the increasing green consciousness among the various stakeholder groups. These stakeholder groups mount pressure on organizations, to inculcate sustainable practices in their operations. In light of the stakeholder-resource-based view, this paper aims to examine the direct effect of stakeholder pressure on sustainability information disclosures. The mediation effect of perceived benefits in the nexus amidst stakeholder pressure and sustainability information disclosures was also assessed. Lastly, the paper assessed the moderation effect of sustainability knowledge in the nexus between perceived benefits and sustainability information disclosures.Design/methodology/approachThis research is quantitative in nature. Structured questionnaire was deployed as the data collection tool. Small and Medium Enterprises in Ghana formed the population. Data set from 258 Ghanaian small and medium enterprises was analyzed by the use of structural equation modeling.FindingsContrary to expectation, the study revealed that the effect of stakeholder pressure on sustainability information disclosures is positive, but statistically insignificant. The nexus between stakeholder pressure and sustainability information disclosures was revealed to be fully mediated by perceived benefits. Lastly, sustainability knowledge was revealed to positively moderate the relationship amidst perceived benefits and sustainability information disclosures.Originality/valueThis paper contributes to sustainability literature by demonstrating how stakeholder pressure influences sustainability information disclosures in the context of small and medium enterprises in an emerging economy.