Variability in sustainability reporting - A multicountry study

The urgent need for businesses worldwide to evolve is driven by environmental consciousness, social responsibility, and corporate governance. This study examines 678 sustainability reports across G20 countries and aims to provide global evidence on the determinants of sustainability reporting through content analysis. We calculate Sustainability Disclosure (SUSD) and Quality Index (QUID) for a select set of cross-sectional public companies. The empirical findings show that sustainability reporting is influenced by country, industry, and firm-level characteristics. Key factors contributing to sustainability reporting include adherence to country-specific standards, OECD guidelines, and external assurance, highlighting the importance of contextual relevance in global sustainability literature. Our findings have two important policy implications: First, they offer valuable insights for sustainability scholars, policymakers, and regulators in developing robust regulations that address materiality while ensuring stakeholder inclusiveness. Second, the significant variability in sustainability reporting across different countries and industries suggests that these differences should be considered when assessing the sustainability performance of organizations.