What are the drivers behind Portuguese companies’ reporting on sustainable development goals?

• Alice Loureiro ^[2] ; Sónia Monteiro ^[2] ; Beatriz Aibar Guzmán ^[1] ; Verónica Ribeiro ^[2] ; Kátia Lemos ^[2]
  1. [1] Universidade de Santiago de Compostela

     Universidade de Santiago de Compostela

     Santiago de Compostela, España

     
  2. [2] Polytechnic University of Cávado and Ave, Taxation, Management School, Research Center on Accounting, Portugal
• Localización: Esic market, ISSN 0212-1867, Vol. 55, Nº 3, 2024
• Idioma: inglés
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• Resumen

  • Objective: This study examines how the largest Portuguese companies integrate information on the Sustainable Development Goals (SDGs) in their non-financial reports, and analyses some potential drivers of SDG reporting (SDGR).

    Methodology: Standalone non-financial reports were collected from 2016 to 2022, resulting in a total of 161 reports from 41 companies. Through content analysis, a disclosure index was developed to assess the level of SDGR.

    Results: There is an upward trend in SDGR among Portuguese companies, albeit at a slow and modest pace. On average, they report on half of the 17 SDGs. We find that listing, industry, adoption of the GRI framework and external assurance by a Big Four firm are the driving factors for SDG disclosure. Conversely, firm size, ISO certification, a sustainability committee and extended reporting have no impact on the disclosure of SDG information by Portuguese companies.

    Limitations: Our study has two main limitations: the small sample size and the fact that the SDG Disclosure Index only measures whether information on the SDGs is disclosed, without assessing its content, scope, or quality.

    Practical implications: Businesses seeking to improve their SDG disclosure should consider adopting the GRI framework or seeking assurance from a Big Four firm. Regulators can use our findings when designing policies aimed at promoting SDG reporting.