scholarly journals Double materiality and the shift from non-financial to European sustainability reporting: review, outlook and implications

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Josef Baumüller ◽  
Karina Sopp
Keyword(s):  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Future Research ◽  
Content Type ◽  
Corporate Reporting ◽  
Stakeholder Groups ◽  
Reporting Requirements ◽  
Historic Development ◽  
Practical Implications ◽  
The Eu

PurposeThis paper outlines the development of the principle of materiality in the European accounting framework, from the Modernization Directive (2003/51/EC) to the NFI Directive (2014/95/EU) and on to the proposals for a Corporate Sustainability Reporting (CSR) Directive (2021/0104 (COD)). The authors highlight how the requirements for corporate reporting in terms of sustainability matters have changed, underlining the main issues that require further attention by practitioners, researchers and legislators.Design/methodology/approachThis paper is based upon a historic analysis of European Union (EU) regulations in the field of non-financial and sustainability reporting and how these have changed over time. A conceptual comparison of different reporting concepts is presented, and changes in their relevance to the EU accounting framework are discussed as part of the historic analysis. Implications from corporate practice are derived from previous empirical findings from the EU Commission's consultations.FindingsThe proposed change from non-financial to sustainability reporting within the EU affects more than simply the terminology used. It implies that a different understanding is needed of both the purposes of company reporting on sustainability matters and the aims of carrying out such reporting. This change was driven by the need and desire to appropriately interpret the principle of materiality set forth in the NFI Directive. However, the recent redefinition in the shift within the EU Commission's proposals presents considerable challenges–and costs–in practice.Research limitations/implicationsFuture research on the conceptualization and operationalization of ecological and social materiality, as well as on the use of this information by different stakeholder groups, is necessary in order to (a) help companies that are applying the reporting requirements in practice, (b) support the increased harmonization of the reports published by these companies and (c) fully assess the costs and benefits associated with the increase in reporting requirements for these companies.Practical implicationsCompanies have to establish relevant reporting processes, systems and formats to fulfil the increasing number of reporting requirements.Originality/valueThis paper outlines the historic development of the principle of materiality regarding mandatory non-financial or sustainability reporting within the EU. It outlines a shift in rationales and political priorities as well as in implications for European companies that need to fulfil the reporting requirements. In consequence, it describes appropriate interpretations of this principle of materiality under current and upcoming legislation, enabling users to apply this principle more effectively.

From voluntarism to regulation: effects of Directive 2014/95/EU on sustainability reporting in the EU

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philipp Ottenstein ◽  
Saskia Erben ◽  
Sébastien Jost ◽  
Carl William Weuster ◽  
Henning Zülch
Keyword(s):  
Financial Reporting ◽  
Sustainability Reporting ◽  
Future Research ◽  
Information Quantity ◽  
Content Type ◽  
Listed Firms ◽  
Reporting Practices ◽  
Cross Cultural Differences ◽  
Practical Implications ◽  
The Eu

PurposeThe aim of this paper is to examine the effects of the European Non-financial Reporting Directive (2014/95/EU) on firms' sustainability reporting practices, especially reporting quantity (i.e. availability of information) and quality (i.e. comparability and credibility).Design/methodology/approachTo test the main hypotheses, the authors select 905 treated firms from the EU 28 + 2 countries for a difference-in-differences regression analysis of dependent variables from the Refinitiv ESG database.FindingsThe results suggest that the Directive influences sustainability reporting quantity and quality. Treated firms provide around 4 percentage points more sustainability information (i.e. availability) than propensity score matched control firms and are 19 percent more likely to receive external assurance (i.e. credibility). However, we also find that the Directive is not the decisive factor in the adoption of GRI guidelines (i.e. comparability).Research limitations/implicationsThe analysis is restricted to large listed firms and does not account for small, mid-sized and private firms. Further, cross-cultural differences which influence sustainability reporting are controlled for but not investigated in detail. The authors derive several suggestions for future research related to the NFR Directive and its revision.Practical implicationsThe authors’ findings have practical implications for the future development of sustainability reporting in the EU and for other regulators considering the adoption of sustainability reporting.Originality/valueThis study is the first to provide evidence on the NFR Directive's reporting effects across multiple countries. It adds to the growing literature on the consequences of mandatory sustainability reporting. Additionally, this paper introduces a novel measurement approach sustainability information quantity that could benefit researchers.

scholarly journals Unemployment and spell duration during the Great Recession in the EU

2015 ◽  
Vol 36 (2) ◽  
pp. 216-235 ◽  
Author(s):  
Carlos Gradín ◽  
Olga Cantó ◽  
Coral del Río
Keyword(s):  
Great Recession ◽  
Negative Impact ◽  
Labour Force ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Great Recession ◽  
Unemployment Spells ◽  
Practical Implications ◽  
The Eu

Purpose – The purpose of this paper is to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession, which had unequal consequences on employment depending on the country considered. Design/methodology/approach – The paper follows Shorrocks’s proposal of a duration-sensitive measure of unemployment, and uses cross-sectional data reported by Eurostat coming from European Labour Force Surveys. Findings – The results add some evidence on the relevance of incorporating spells’ duration in measuring unemployment, finding remarkable differences in unemployment patterns in time among European countries. Research limitations/implications – In this paper unemployment is analyzed for all the labor force. Future research should investigate patterns across specific groups such as young people, women, immigrants or the low skilled. Practical implications – It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. The paper shows an easy and practical way to do it in order to improve the understanding of the unemployment phenomenon, using information usually reported by statistical offices. Originality/value – First, the paper provides a tool for dynamic analysis of unemployment based on reported cross-sectional data. Second, the paper demonstrates the empirical relevance of considering spells’ duration when assessing differences in unemployment across countries or in unemployment trends. This is usually neglected or only partially addressed by most conventional measures of unemployment.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alessandro Lai ◽  
Riccardo Stacchezzini
Keyword(s):  
Design Methodology ◽  
Sustainability Reporting ◽  
Future Research ◽  
Special Issue ◽  
Content Type ◽  
Professional Capital ◽  
Research And Practice ◽  
Corporate Reporting ◽  
Professional Challenges ◽  
Reporting Practice

Purpose This paper aims to trace subsequent steps of the sustainability reporting evolution in terms of changes in the organisation fields and professional jurisdictions involved. As such, it highlights the (interrelated) organisational and professional challenges associated with the progressive incorporation of “sustainability” within corporate reporting. Design/methodology/approach The paper draws on Suddaby and Viale’s (2011) theorisation of how professionals reshape organisational fields to highlight how organisational spaces, actors, rules and professional capital evolve alongside the incorporation of sustainability within corporate reporting. Findings The paper shows organisational spaces, actors, rules and professional capital mobilised during the recent evolution of sustainability reporting, starting from a period in which there was no space for sustainability, to more recent periods in which sustainability gained increasing momentum beyond initial niches, and culminating in more integrated forms of sustainability reporting. Research limitations/implications Although the analysis is limited to empirical evidence collected by prior research and practice on sustainability reporting, the paper offers a view to imagine how the incorporation of sustainability within corporate reporting relies on and affects organisational fields and professional jurisdictions. Originality/value The paper offers a lens to interpret corporate and professional challenges associated with the more recent evolutions of sustainability reporting practice and standard setting. It also allows framing the papers accepted in the special issue on “new challenges in sustainability reporting” and concludes by suggesting an agenda for future research.

scholarly journals An empirical study of sustainability reporting assurance: current trends and new insights

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kholod Fahad Alsahali ◽  
Ricardo Malagueño
Keyword(s):  
Sustainability Reporting ◽  
Future Research ◽  
Firm Level ◽  
Accounting Firms ◽  
Content Type ◽  
Global Trends ◽  
Current Trends ◽  
Consulting Firms ◽  
Sustainability Reports ◽  
Practical Implications

Purpose This study aims to examine trends in the global assurance practices of sustainability reports, updating and broaden the extant literature and proving new insights that could guide future research. Design/methodology/approach The data were collected for 12,783 companies and exploratory descriptive analyses of sustainability reporting assurance practices were undertaken. Findings The study shows that assurance growth is lagging behind the growth in sustainability reporting. It reveals that assurer switching is a common practice amongst companies. There is an increasing trend towards the use of the International Standard for Assurance Engagements 3000 by non-accounting assurers. Additionally, in terms of assurance providers, the study finds that accounting firms are dominating the market, however, engineering firms are fast increasing their share of the sustainability assurance market, whilst consulting firms’ share is decreasing. However, the switch towards consulting firms is higher than the switch towards accounting firms in the last switch period. Practical implications Overall, the results of this study provide insights about companies’ assurance practices for regulators, assurance providers and companies interested in assuring their sustainability reports. Social implications This study is relevant for companies’ stakeholders, including investors, to enhance their understanding of companies’ current assurance practices. Originality/value Prior studies on the assurance practices of sustainability reports are limited in scope (concentrate on large companies) and depth (examine accounting vs non-accounting assures and consider the evolving patterns at the institutional rather than firm-level). This study presents developments and trajectories of assurance practices to inform researchers and practitioners on the global trends by bringing an updated and broader perspective on the topic.

Impression management tactics in sustainability reporting

2015 ◽  
Vol 11 (4) ◽  
pp. 677-689 ◽  
Author(s):  
Maria Sandberg ◽  
Maria Holmlund
Keyword(s):  
Impression Management ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Future Research ◽  
Content Type ◽  
Template Analysis ◽  
Impression Management Tactics ◽  
Practical Implications ◽  
Insight Into ◽  
Management Tactics

Purpose – The study aims to analyzes how companies present their actions to give the impression that they are sustainable actors. It identifies the organizational impression management tactics that companies use in sustainability reporting. Design/methodology/approach – A qualitative template analysis of two sustainability reports was conducted to inductively identify the organizational impression management tactics that companies use in sustainability reporting. Findings – The study identified eight organizational impression management tactics used in sustainability reporting, four of which relate to how companies present their actions while the remaining four are characteristic of the writing styles that companies use. Research limitations/implications – The study is exploratory in nature and does not claim to identify all existing impression management tactics. Therefore, future research is needed to confirm the results and identify possible additional tactics. Practical implications – Companies can use impression management tactics that more strongly aim to shape the impressions that stakeholders hold or tactics that more neutrally inform stakeholders of their actions. Companies need to make a choice between the two, considering that stakeholders’ expectations of sustainability reporting would be useful. Originality/value – The study shows the different ways that companies use impression management in sustainability reporting, thus lending insight into a perspective on sustainability reporting that has rarely been explored in previous research.

Assessing sustainability reports of US universities

2018 ◽  
Vol 19 (7) ◽  
pp. 1158-1184 ◽  
Author(s):  
Remmer Sassen ◽  
Leyla Azizi
Keyword(s):  
Social Performance ◽  
Sustainability Reporting ◽  
Social Dimension ◽  
Future Research ◽  
Content Type ◽  
Political Incentives ◽  
The Social ◽  
Sustainability Reports ◽  
The University ◽  
Practical Implications

Purpose The purpose of this study is to assess sustainability reports of US universities to provide findings on the relative importance of disclosure topics. Design/methodology/approach The authors conducted content analysis by using a specific university-oriented catalogue of indicators to cover the specific sustainability-related aspects of this sector. Findings Sustainability reporting by universities is still in its early stages. The findings show a clear focus on the environmental dimension, whereas the university and the economic dimensions see lower levels of reporting. The social dimension is rarely addressed. Research limitations/implications Future research could use the results of this study as a basis for investigating stakeholder expectations towards universities’ sustainability reporting and developing university-specific sustainability reporting standards. Practical implications The results could be used to improve universities’ sustainability reporting, as “good” practices are now readily available. Social implications The level of reporting on the social dimension is very low. Therefore, developing political incentives to improve universities’ social performance might be of interest. Originality/value The investigated setting is unique and contributes several findings in a less-researched area along with several practical, social and research implications.

Sustainability reporting at EU level: leading by example?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Katharina Bryan
Keyword(s):  
Public Sector ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Future Research ◽  
Content Type ◽  
The Public ◽  
Research Areas ◽  
European Court ◽  
The Status ◽  
The Eu

PurposeThis paper aims to contribute to research on public sector sustainability reporting, by focussing on the sustainability reporting of EU institutions and agencies. It seeks to examine to what extent the EU is leading by example in this area and to highlight the challenges for developing sustainability reporting at EU level.Design/methodology/approachThe paper is based on the European Court of Auditors’ (ECA) review on reporting on sustainability and presents the results of qualitative research, including a survey conducted among EU institutions and agencies. Additional secondary literature analysis puts the review's findings into the current research context on sustainability reporting.FindingsThe paper provides an overview of how the EU and its institutions and agencies report on sustainable development. It finds that the EU, as well as its institutions and agencies, are not yet leading by example on sustainability reporting. Of the 53 EU institutions and agencies surveyed, only 2 published sustainability reports. Additionally, the paper identifies key challenges for sustainability reporting in the public sector and highlights future research areas.Originality/valueThis is the first academic article on sustainability reporting of EU institutions and agencies. It contributes to our understanding of the status and challenges of public sector, supranational sustainability reporting and the auditing of such activities.

An exploratory study on the components and quality of combined assurance in an integrated or a sustainability reporting setting

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andre Prinsloo ◽  
Warren Maroun
Keyword(s):  
Sustainability Reporting ◽  
Quality Measure ◽  
Future Research ◽  
Content Type ◽  
Corporate Reporting ◽  
The Board Of Directors ◽  
External Sources ◽  
Sustainability Reports ◽  
Integrated Or

Purpose This research complements the corporate reporting literature by exploring the different types of assurance, which companies are using to bolster the credibility of their integrated and sustainability reports. A composite quality measure is proposed and this study aims to provide evidence on how combined assurance quality (CAQ) varies among firms. Design/methodology/approach Content analysis is used to identify “elements” of combined assurance disclosed in integrated and sustainability reports and company webpages. Results are presented in tabular format and supported by non-parametric tests to evaluate differences in CAQ among firms in more detail. Findings Combined assurance is framed as a function of the responsibility of the board of directors to ensure accurate, complete and reliable reporting and the characteristics of different internal and external sources of assurance. Overall, combined assurance models are being designed conservatively. They focus mainly on specific disclosures and are guided by a limited number of assurance methodologies or frameworks instead of taking a more pluralistic approach to verification of integrated and sustainability reports as a whole. Research limitations/implications The study is based on combined assurance practices by a sample of large listed companies in a single jurisdiction. An international comparison of combined assurance and the calibration of the proposed quality measure is deferred for future research. Practical implications Limitations in existing assurance practices are identified for the consideration of preparers and assurance providers. The quality schematic also offers practitioners, standard-setters and academics an easy-to-apply technique for examining the different elements of a company’s combined assurance model. Social implications A better understanding of the quality of combined assurance is essential for users’ to place reliance on integrated and sustainability reports and for informing change to existing assurance practices. Originality/value The study is the first to examine the operation and quality of combined assurance. The method used to gauge assurance quality provides a useful basis for a more detailed empirical study on the relevance of combined assurance.

Facilitating accountability in corporate sustainability reporting through Spotlight Accounting

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephanie Perkiss ◽  
Leopold Bayerlein ◽  
Bonnie Amelia Dean
Keyword(s):  
Corporate Sustainability ◽  
Sustainability Reporting ◽  
Power Dynamics ◽  
Content Type ◽  
Decision Usefulness ◽  
Aggregate Analysis ◽  
Student Researchers ◽  
Practical Implications ◽  
Inform Decision Making ◽  
Engaging Student

PurposeIt is difficult for corporate sustainability reporting (CSR) to provide accountability to stakeholders. This paper assesses whether accountability-based CSR systems can be created through the application of Spotlight Accounting and WikiRate as a hybrid forum.Design/methodology/approachThe current paper explores the utility of Spotlight Accounting for CSR through assessing its application to a hybrid forum, WikiRate. This process involved engaging student researchers to collect CSR data from the United Nations Global Compact's (UNGC) corporate action group (CAG) and recording this information into the WikiRate platform. Aggregate analysis was conducted to assess the limitations and challenges of the data to inform decision-making.FindingsSpotlight Accounting exposes challenges within traditional applications of CSR. These challenges impact comparability, decision usefulness and accountability of CSR data for stakeholders.Practical implicationsThis paper provides recommendations to enhance the accessibility and relevance of company information to assist in the provision of Spotlight Accounting. In doing so, it highlights the usefulness of CSR to leverage greater accountability between corporations and society.Originality/valueThis paper applies the emerging practices of Spotlight Accounting and presents it as an alternative way to research and conceptualise external accounts, reporting and accountability. This form of accounting has the potential to enhance communications and partnerships between companies and society as well as challenge dominate power dynamics held by corporations.

scholarly journals Advantages and potential challenges of data management in e-maintenance

2019 ◽  
Vol 25 (3) ◽  
pp. 378-396 ◽  
Author(s):  
Arian Razmi-Farooji ◽  
Hanna Kropsu-Vehkaperä ◽  
Janne Härkönen ◽  
Harri Haapasalo
Keyword(s):  
Data Management ◽  
Design Methodology ◽  
Management Practices ◽  
Future Research ◽  
Conceptual Approach ◽  
Content Type ◽  
Different Types ◽  
Maintenance Systems ◽  
Industry Leader ◽  
Practical Implications

Purpose The purpose of this paper is twofold: first, to understand data management challenges in e-maintenance systems from a holistically viewpoint through summarizing the earlier scattered research in the field, and second, to present a conceptual approach for addressing these challenges in practice. Design/methodology/approach The study is realized as a combination of a literature review and by the means of analyzing the practices on an industry leader in manufacturing and maintenance services. Findings This research provides a general understanding over data management challenges in e-maintenance and summarizes their associated proposed solutions. In addition, this paper lists and exemplifies different types and sources of data which can be collected in e-maintenance, across different organizational levels. Analyzing the data management practices of an e-maintenance industry leader provides a conceptual approach to address identified challenges in practice. Research limitations/implications Since this paper is based on studying the practices of a single company, it might be limited to generalize the results. Future research topics can focus on each of mentioned data management challenges and also validate the applicability of presented model in other companies and industries. Practical implications Understanding the e-maintenance-related challenges helps maintenance managers and other involved stakeholders in e-maintenance systems to better solve the challenges. Originality/value The so-far literature on e-maintenance has been studied with narrow focus to data and data management in e-maintenance appears as one of the less studied topics in the literature. This research paper contributes to e-maintenance by highlighting the deficiencies of the discussion surrounding the perspectives of data management in e-maintenance by studying all common data management challenges and listing different types of data which need to be acquired in e-maintenance systems.

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