Abstract
Recent years have seen a consolidation of existing sustainability reporting standards as well as the emergence of new players on that field of regulation. In particular, the publication of the first European Sustainability Reporting Standards in Europe (ESRS) and IFRS Sustainability Disclosure Standards (IFRS SDS) as the intended “global baseline” for sustainability reporting attracted considerable attention. The new regulatory environment for corporations in Europe as well as in other jurisdictions is subject to drastic changes. But while the (political) ambitions behind these developments are very similar, new questions arise with regard to different approaches that are taken and potential obstacles that prevent actors from achieving the aims. This chapter outlines these developments and some of the questions they evoke. It summarises some of the underlying assumptions of European and international regulators that will now be put to an empirical test. Its results should inform any further regulatory ambitions and thus contribute to the aim of changing corporate behaviour, thus transforming business models and supporting sustainable development.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abela M (2022) A new direction? the “mainstreaming” of sustainability reporting. Sustain Account Manag Policy J 13(6):1261–1283. https://doi.org/10.1108/SAMPJ-06-2021-0201
Abhayawansa S (2022) Swimming against the tide: back to single materiality for sustainability reporting. Sustain Account Manag Policy J 13(6):1361–1385. https://doi.org/10.1108/SAMPJ-07-2022-0378
Accountancy Europe (2021) FAQs on Sustainability information assurance. https://accountancyeurope.eu/wp-content/uploads/2022/12/211103_FAQs_Sustainability%C2%B0reporting_assurance_Accountancy_EU.pdf
Adams CA, Abhayawansa S (2022) Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for ‘harmonisation’ of sustainability reporting. Crit Perspect Account 82:102309. https://doi.org/10.1016/j.cpa.2021.102309
Adams CA (2023) Bridging the gap: achieving credible and comparable impact reporting. https://www.globalreporting.org/news/news-center/bridging-the-gap-achieving-credible-and-comparable-impact-reporting/
Ali I, Fukofuka PT, Narayan AK (2023) Critical reflections on sustainability reporting standard setting. Sustain Account Manag Policy J 14(4):776–791. https://doi.org/10.1108/SAMPJ-01-2022-0054
Allen MW, Craig CA (2016) Rethinking corporate social responsibility in the age of climate change: a communication perspective. Int J Corp Soc Responsib 1(1). https://doi.org/10.1186/s40991-016-0002-8
Alsahali KF, Malagueño R (2022) An empirical study of sustainability reporting assurance: current trends and new insights. J Account Organ Chang 18(5):617–642. https://doi.org/10.1108/JAOC-05-2020-0060
Association of Chartered Certified Accountants (ACCA) (2023) Sustainability Assurance–Rising to the Challenge. London
Baboukardos D, Gaia S, Lassou P, Soobaroyen T (2023) The multiverse of non-financial reporting regulation. Account Forum 47(2):47–165. https://doi.org/10.1080/01559982.2023.2204786
Bakarich KM, Hoffmann M, Marcy AS, O’Brien P (2023) Accountants’ views on sustainability reporting: a generational divide. Curr Issues Account 17(1):A22–A35. https://doi.org/10.2308/CIIA-2022-003
Bakker P (2013) Accountants will save the world. Harvard Bus Rev. https://hbr.org/2013/03/accountants-will-save-the-worl
Baumüller J, Grbenic S (2021) Moving from non-financial to sustainability reporting: analyzing the EU Commission's proposal for a Corporate Sustainability Reporting Directive (CSRD). Facta Universitatis, Ser Econ Organ 18(4):369–381. https://doi.org/10.22190/FUEO210817026B
Baumüller J, Leitner-Hanetseder S (2023) Accounting for a green economy. In: Lehner OM, Harrer T, Silvola H, Weber O (eds) The Routledge handbook of green finance. London, pp 23–40. https://doi.org/10.4324/9781003345497
Baumüller J, Schaffhauser-Linzatti M-M (2018) In search of materiality for nonfinancial information–reporting requirements of the Directive 2014/95/EU, NachhaltigkeitsManagementForum 26(1):101–111. https://doi.org/10.1007/s00550-018-0473-z
Baumüller J, Sopp K (2022) Double materiality and the shift from non-financial to European sustainability reporting: review, outlook and implications. J Appl Acc Res 23(1):8–28. https://doi.org/10.1108/JAAR-04-2021-0114
Breijer R, Orij RP (2022) The comparability of non-financial information: an exploration of the impact of the non-financial reporting directive (NFRD, 2014/95/EU). Account Europe 19(2):332–361. https://doi.org/10.1080/17449480.2022.2065645
Cenci S (2023) A large-scale analysis of the heterogeneity of markets’ reactions to the disclosure of nonfinancial information. J Sustain Financ Investment. https://doi.org/10.1080/20430795.2023.2228746
Centre for European Policy Studies (CEPS) and Milieu (2022) Cost-benefit analysis of the First Set of draft ESRS. Brussels 2022
Centre for European Policy Studies (CEPS) (2020) Study on the Non-Financial Reporting Directive. Brussels 2020
Chiu IHY (2022) The EU sustainable finance agenda: developing governance for double materiality in sustainability metrics. Euro Bus Organ Law Rev 23(1):87–123. https://doi.org/10.1007/s40804-021-00229-9
Christensen HB, Hail L, Leuz C (2021) Mandatory CSR and sustainability reporting: economic analysis and literature review. Rev Acc Stud 26(3):1176–1248. https://doi.org/10.1007/s11142-021-09609-5
Costa E, Pesci C, Andreaus M, Taufer E (2022) When a sector-specific standard for non-financial reporting is not enough: evidence from microfinance institutions in Italy. Sustain Account Manag Policy J 13(6):1334–1360. https://doi.org/10.1108/SAMPJ-06-2021-0253
Cuomo F, Gaia S, Girardone C, Piserà S (2022) The effects of the EU non-financial reporting directive on corporate social responsibility. Euro J Financ 30(7):726–752. https://doi.org/10.1080/1351847X.2022.2113812
de Villiers C, La Torre M, Molinari M (2022) The Global Reporting Initiative’s (GRI) past, present and future: critical reflections and a research agenda on sustainability reporting (standard-setting). Pac Account Rev 34(5):728–747. https://doi.org/10.1108/PAR-02-2022-0034
Eccles RG, Krzus MP, Rogers J, Serafeim G (2012) The need for sector-specific materiality and sustainability reporting standards. J Appl Corp Financ 24(2):65–71. https://doi.org/10.1111/j.1745-6622.2012.00380.x
EFRAG and GRI (2021) EFRAG and GRI landmark Statement of Cooperation: Working towards international sustainability reporting convergence, EFRAG Project Task Force on European sustainability reporting standards (PTF-ESRS) and GRI sign landmark Statement of Cooperation. https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2FEFRAG%2520GRI%2520COOPERATION%2520PR.pdf
EFRAG and GRI (2023) EFRAG and GRI enhance collaboration with deeper ties new cooperation agreement reached, as GRI-ESRS Interoperability Index is made publicly available. https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Final+Press+release+-+GRI-EFRAG+MoU+and+interoperability+tool_final.pdf
European Commission (2020) Summary report of the public consultation on the review of the non-financial reporting directive, 20 February 2020–11 June 2020. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=PI_COM:Ares(2020)3997889
European Commission (2021) Commission Staff working document: fitness check on the EU framework for public reporting by companies, Brussels, 21.4.2021, SWD(2021) 81 final
European Commission (2023) Press release: commission welcomes political agreement on rules enforcing human rights and environmental sustainability in global supply chains, 14.12.2023. https://ec.europa.eu/commission/presscorner/detail/en/ip_23_6599
Fernandez-Feijoo B, Romero S, Ruiz S (2016) The assurance market of sustainability reports: what do accounting firms do? J Clean Prod 139:1128–1137. https://doi.org/10.1016/j.jclepro.2016.08.157
Fiechter P, Hitz J-M, Lehmann N (2022) Real effects of a widespread csr reporting mandate: evidence from the European Union’s CSR directive. J Account Res 60(4):1499–1549. https://doi.org/10.1111/1475-679X.12424
Gatti L, Seele P, Rademacher L (2019) Grey zone in–greenwash out. A review of greenwashing research and implications for the voluntary-mandatory transition of CSR. Int J Corp Soc Responsib 4(6). https://doi.org/10.1186/s40991-019-0044-9
Giner B, Luque-Vilchez M (2022) A commentary on the “new” institutional actors in sustainability reporting standard-setting: a European perspective. Sustain Account Manag Policy J 13(6):1284–1309. https://doi.org/10.1108/SAMPJ-06-2021-0222
Grabs S, Stuchtey S (2023) Comment: why Europe’s new reporting standards could be a game-changer for nature, Reuters. https://www.reuters.com/sustainability/sustainable-finance-reporting/comment-why-europes-new-reporting-standards-could-be-game-changer-nature-2023-05-18/
IFRS Foundation (2020) Consultation Paper on Sustainability Reporting. https://www.ifrs.org/content/dam/ifrs/project/sustainability-reporting/consultation-paper-on-sustainability-reporting.pdf
IFRS Foundation (2022a) ISSB delivers proposals that create comprehensive global baseline of sustainability disclosures. https://www.ifrs.org/news-and-events/news/2022/03/issb-delivers-proposals-that-create-comprehensive-global-baseline-of-sustainability-disclosures/
IFRS Foundation (2022b) IFRS Foundation and GRI to align capital market and multi-stakeholder standards to create an interconnected approach for sustainability disclosures. https://www-ifrs-org.translate.goog/news-and-events/news/2022/03/ifrs-foundation-signs-agreement-with-gri/?_x_tr_sl=en&_x_tr_tl=de&_x_tr_hl=de&_x_tr_pto=tc
International Organization of Securities Commissions (IOSCO) (2023) IOSCO endorses the ISSB’s Sustainability-related Financial Disclosures Standards, IOSCO/MR/19/2023
Kinderman D (2020) The challenges of upward regulatory harmonization: the case of sustainability reporting in the European Union. Regul Gov 14(4):674–697. https://doi.org/10.1111/rego.12240
Korca B, Costa E, Bouten L (2023) Disentangling the concept of comparability in sustainability reporting. Sustain Account Manag Policy J 14(4):815–851. https://doi.org/10.1108/SAMPJ-05-2022-0284
KPMG (2022) Big shifts, small steps: survey of sustainability reporting 2022. https://assets.kpmg.com/content/dam/kpmg/se/pdf/komm/2022/Global-Survey-of-Sustainability-Reporting-2022.pdf
Larrinaga C, Bebbington J (2021) The pre-history of sustainability reporting: a constructivist reading. Account Auditing Accountability J 34(9):162–181. https://doi.org/10.1108/AAAJ-03-2017-2872
Liu M, Tang J, Walton S, Zhang Y, Zhao X (2023) Auditor sustainability focus and client sustainability reporting. Acc Organ Soc. https://doi.org/10.1016/j.aos.2023.101512
Marquis C, Toffel MW, Zhou Y (2016) Scrutiny, norms, and selective disclosure: a global study of greenwashing. Organ Sci 27(2):233–504. https://doi.org/10.1287/orsc.2015.1039
Migliorelli M (2021) What do we mean by sustainable finance? assessing existing frameworks and policy risks. Sustainability 13:975. https://doi.org/10.3390/su13020975
Mirchandani B (2021) The biggest change in corporate reporting since the 1930s: How to read IFRS prototype sustainability and climate standards, Forbes. https://www.forbes.com/sites/bhaktimirchandani/2021/11/04/the-biggest-change-in-corporate-reporting-since-the-1930s-how-to-read-ifrs-prototype-sustainability-and-climate-standards/?sh=43bf52af7327
Ohl A, Horn H, Wieman V (2022) Navigating the ESG landscape: comparison of the “Big Three” Disclosure Proposals, Harvard Law School Forum on Corporate Governance, https://corpgov.law.harvard.edu/2022/10/10/navigating-the-esg-landscape-comparison-of-the-big-three-disclosure-proposals/
Pesci C, Vola P, Gelmini L (2023) Flattening or addressing complexity? the future role of GRI in light of the sustainability accounting (r)evolution. Sustain Account Manag Policy J 14(4):792–814. https://doi.org/10.1108/SAMPJ-05-2022-0287
Securities and Exchange Commission (SEC) (2022) Fact sheet: enhancement and standardization of climate-related disclosures. https://www.sec.gov/files/33-11042-fact-sheet.pdf
Sheldon MD, Jenkins JG (2020) The influence of firm performance and (level of) assurance on the believability of management’s environmental report. Account Auditing Accountability J 33(3):501–528. https://doi.org/10.1108/AAAJ-11-2018-3726
Simnet R, Vanstraelen A, Chua WF (2009) Assurance of sustainability reports: an international comparison. Account Rev 84(3):937–967. https://doi.org/10.2308/accr.2009.84.3.937
Spandel T, Oll J, Schiemann F, Akkermann J (2023) Materiality as an essentially contested concept: pathways forward for sustainability disclosure research. SSRN, https://ssrn.com/abstract=4323836 or https://doi.org/10.2139/ssrn.4323836
Stolowy H, Paugam L (2023) Sustainability reporting: is convergence possible? Account Europe 20(2):139–165. https://doi.org/10.1080/17449480.2023.2189016
Thompson EK, Ashimwe O, Buertey S, Kim S-Y (2022) The value relevance of sustainability reporting: does assurance and the type of assurer matter? Sustain Account Manag Policy J 13(4):858–877. https://doi.org/10.1108/SAMPJ-08-2021-0329
United Nations Environment Programme (UNEP) (2015) Raising the bar on corporate sustainability reporting to meet ecological challenges globally. https://www.unep.org/news-and-stories/press-release/raising-bar-corporate-sustainability-reporting-meet-ecological
United Nations Environment Programme (UNEP) (2019) Corporate sustainability reporting toolkit–enhancing the uptake and impact of corporate sustainability reporting: a handbook and toolkit for policymakers and relevant stakeholders, section a–background to sustainability reporting. https://wedocs.unep.org/bitstream/handle/20.500.11822/30663/CSRHdb.pdf?sequence=1&isAllowed=y
Vigneau L, Adams CA (2023) The failure of transparency as self-regulation. Sustain Account Manag Policy J 14(4):852–876. https://doi.org/10.1108/SAMPJ-01-2022-0051
Villiers C (2022) New directions in the european union’s regulatory framework for corporate reporting, due diligence and accountability: the challenge of complexity. Euro J Risk Regul 13(4):548–566. https://doi.org/10.1017/err.2022.25
Wagenhofer A (2024) Sustainability reporting: a financial reporting perspective. Account Europe 21(1):1–13. https://doi.org/10.1080/17449480.2023.2218398
Willems M (2023) Opinion: big four-led ESG reporting is outright dangerous and ‘an accident waiting to happen’. https://esginsight.org/opinion-big-four-led-esg-reporting-is-outright-dangerous-and-an-accident-waiting-to-happen/
Zetzsche DA, Anker-Sørensen L (2022) Regulating sustainable finance in the dark. Euro Bus Organ Law Rev 23(1):47–85. https://doi.org/10.1007/s40804-021-00237-9
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Baumüller, J., Schaffhauser-Linzatti, MM., Sopp, K. (2024). An Agenda for Research on Sustainability Reporting: Europe and Beyond. In: Leal Filho, W., Salvia, A.L., Portela de Vasconcelos, C.R. (eds) An Agenda for Sustainable Development Research. World Sustainability Series. Springer, Cham. https://doi.org/10.1007/978-3-031-65909-6_35
Download citation
DOI: https://doi.org/10.1007/978-3-031-65909-6_35
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-65908-9
Online ISBN: 978-3-031-65909-6
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)