Sustainability reporting is a central topic in the landscape of non-financial disclosure, but what theories are driving its evolution? Is it merely a regulatory obligation, or does it represent a true tool for corporate transformation? Do companies communicate their environmental performance out of transparency or to build a positive image?
In the 1980s, research began to view accounting as a social phenomenon, analyzing the social factors that influence accounting practices and their effects. The concept of non-financial accounting later expanded to include various forms of reporting, such as integrated reporting, social accounting, sustainability reporting, and environmental reporting. Research has also highlighted a growing balance between social and environmental aspects of reporting, supported by analytical methods such as content analysis and case studies.
At the European level, non-financial reporting has become increasingly relevant, as evidenced by Directive 2014/95/EU, which since 2017 has required large companies with over 500 employees to publish social, environmental, and governance information. More recently, the EU has tasked EFRAG with exploring new standards for non-financial reporting.
Despite the long history of social and environmental disclosures, there is still an ongoing debate about the theoretical foundations and tools for their implementation. Various theories have been used to explain sustainability reporting, but no unified theory exists. This study aims to fill that gap by examining the most commonly used theories in academic literature, identifying their interconnections, and evaluating new research perspectives. The goal is to understand how these theories are applied, combined, and with what purpose in the context of sustainability reporting.
The study by Francesca Bartolacci, Marco Bellucci, Katia Corsi, and Michela Soverchia, titled “A Systematic Literature Review of Theories Underpinning Sustainability Reporting in Non-Financial Disclosure”, presents a systematic literature review of the theories applied to sustainability reporting, examining both traditional and emerging approaches. Through an analysis of over 30 years of research, the authors identify the most widely used theories—such as legitimacy theory, stakeholder theory, and institutional theory—highlighting their interconnections and the latest trends.
What are the new theoretical perspectives in this field? This work reveals how academic research is influencing corporate transparency and how companies respond to social and regulatory pressures.
Find out more about our analysis and read the full paper on our website:
Bartolacci, F., Bellucci, M., Corsi, K., & Soverchia, M. (2022). A Systematic Literature Review of Theories Underpinning Sustainability Reporting in Non-Financial Disclosure. Non-financial Disclosure and Integrated Reporting, 87–113.
