Digitally unified reporting: how XBRL-based real-time transparency helps in combining integrated sustainability reporting and performance control

Abstract

In this paper, I address the call for a "new approach to sustainability reporting" (Lubin and Esty, 2014) based on the present "sustainability gap" and propose the concept of "digitally unified reporting." This is achieved by reviewing two major trends from distinct bodies of literature: "integrated reporting" from the sustainability field and unified data based "XBRL-integrated reports" as established in financial reporting making use of the digital standard XBRL (eXtensible Business Reporting Language). Based on a systematic literature review, eight trend statements are derived pointing at gaps and issues in the field of sustainability reporting and management. Following this review, I propose a new concept called "digitally unified reporting" that addresses these issues. The core contribution is an XBRL-based approach to sustainability reporting that combines digital data management of sustainability performance measurement with digitally standardized sustainability reporting. To advance theory, "digitally unified reporting" is defined and discussed and positioned as a "twin track approach" to sustainability reporting (Burritt and Schaltegger, 2010) that provides both an inside-out and an outside-in perspective on sustainability reporting and management. The major advancement and theoretical contribution of the proposed concept is a time-ontological shift due to 24/7/365 digital transparency. This proposed shift is from retrospective reporting on past performance to digitally enabled and interoperable real-time transparency of performance measurement and reporting for managers and external stakeholders. Finally, the concept is compared to current conventional reporting approaches.

Industry 4.0 and environmental accounting: a new revolution?

“…Such data is referred to as providing 24/7/365 digital real-time transparency of performance measurement and reporting both for managers and external stakeholders (Seele, 2016). This means data is available immediately (real time) at every moment of every day (24 h, 7 days a week and 365 days a year).…”

“……corporate executives as well as regulators and external stakeholders (if data were published instantly) could react immediately in making informed decisions on relevant data points (Seele, 2016).…”

A New Form of Reporting For Companies. The Integrated Reporting.

“…Firms like Nordisk, Sony, Hyundai engineering, etc. are a small example (Seele, 2016). In addition, stills increasing much more than other places in countries like South Africa where this type of reporting is compulsory for listed companies (Chersan, 2015).…”

“…Following this line of thought Thomson (2014) argues that the integrated account must have a true language and structure, mandatory, plausible, understandable and reliable. Using a standardized taxonomy is one way to reach consistency and comparison and connectivity of information and it goes beyond (Seele, 2016 The good and the bad thing of XBRL is that: it helps to organize comprehension information but the reporting process can have high costs of developing data standards (Seele, 2016).…”

The game-changing potential of digitalization for sustainability: possibilities, perils, and pathways

“…Information and communication (ICT) technology constitute our new "digital age" (Schmidt and Cohen 2013), encompassing a richness of soft-and hardware and linked processes. Analyses of genetic sequences, personal health data, phone changes sustainability.…”