Sustainability reporting has become a central topic in the landscape of non-financial disclosure. But which theoretical frameworks are driving its evolution? Is it merely a regulatory requirement, or does it serve as a genuine tool for organizational change? Do companies disclose their environmental performance for the sake of transparency, or to craft a positive corporate image?
Since the 1980s, research has increasingly framed accounting as a social phenomenon, exploring how social factors influence accounting practices and their outcomes. Over time, the scope of non-financial accounting has broadened to encompass various forms of reporting, including integrated reporting, social accounting, sustainability reporting, and environmental reporting. Academic research has also highlighted a growing balance between the social and environmental dimensions of reporting, supported by the use of methodological tools such as content analysis and case studies.
At the European level, non-financial reporting has gained increasing importance. A key milestone was the adoption of Directive 2014/95/EU, which since 2017 has required large companies with more than 500 employees to disclose information on social, environmental, and governance issues. More recently, the European Union has mandated EFRAG to explore the development of new non-financial reporting standards.
Despite the longstanding tradition of social and environmental disclosures, debate continues regarding the theoretical foundations and practical tools underpinning them. A range of theories has been used to interpret sustainability reporting practices, yet no single unifying framework has emerged. This study seeks to address that gap by examining the most frequently applied theories in academic literature, mapping their interconnections, and identifying new research perspectives. The goal is to understand how these theories are applied, how they are combined, and to what ends, within 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”, offers a comprehensive review of the literature on 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 frequently used theories—such as legitimacy theory, stakeholder theory, and institutional theory—and explore their interconnections and recent trends. What are the new theoretical perspectives emerging in this field? This work shows how academic research is shaping corporate transparency and influencing how companies respond to social and regulatory pressures. Learn more about the findings of 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.
