Sustainability reporting in Africa: A systematic review and agenda for future research

Igwe, Monday Nweke; Khatib, Saleh F. A.; Bazhair, Ayman Hassan

doi:10.1002/csr.2494

Cited by 6 publications

(5 citation statements)

References 147 publications

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“…The current findings align with previous research by Arora et al (2022), which also emphasised the flexibility of the <IR> Framework in portraying an organisation’s value-creation narrative. Interestingly, this research contrasts with earlier findings that found companies generally reported on only a limited set of specific sustainability issues (Visser, Wayne Africa Merlin-Tao, 2002; Igwe et al , 2023). Instead, the present study indicates that the <IR> Framework enables companies to cover a broader spectrum of sustainability issues, perhaps more attuned to their particular context.…”

Section: Discussioncontrasting

confidence: 99%

“…These are further exacerbated by the lingering effects of apartheid, leading to social problems that are more profound than those in most other nations (Carels et al , 2013; Haji and Anifowose, 2017; Montecalvo et al , 2018). South African companies, mirroring a trend seen in many other developing countries, often place less emphasis on environmental impacts and provide comparatively limited environmental disclosure (De Villiers and Van Staden, 2006; Igwe et al , 2023). South Africa’s sustainability reporting practices are heavily influenced by its socio-economic challenges (Visser, Wayne Africa Merlin-Tao, 2002), rendering previous research on this subject less applicable to understanding sustainability reporting in more developed countries.…”

Section: Discussionmentioning

confidence: 99%

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Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Setia,

Abhayawansa,

Joshi

et al. 2024

MEDAR

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Purpose Integrated reporting enhances the meaningfulness of non-financial information, but whether this enhancement is progressive or regressive from a sustainability perspective is unknown. This study aims to examine the influence of the Integrated Reporting (<IR>) Framework on the disclosure of financial- and impact-material sustainability-related information in integrated reports. Design/methodology/approach Using a disclosure index constructed from the Global Reporting Initiative’s G4 Guidelines and UN Sustainable Development Goals, the authors content analysed integrated reports of 40 companies from the International Integrated Reporting Council’s Pilot Programme Business Network published between 2015 and 2017. The content analysis distinguished between financial- and impact-material sustainability-related information. Findings The extent of sustainability-related disclosures in integrated reports remained more or less constant over the study period. Impact-material disclosures were more prominent than financial material ones. Impact-material disclosures mainly related to environmental aspects, while labour practices-related disclosures were predominantly financially material. The balance between financially- and impact-material sustainability-related disclosures varied based on factors such as industry environmental sensitivity and country-specific characteristics, such as the country’s legal system and development status. Research limitations/implications The paper presents a unique disclosure index to distinguish between financially- and impact-material sustainability-related disclosures. Researchers can use this disclosure index to critically examine the nature of sustainability-related disclosure in corporate reports. Practical implications This study offers an in-depth understanding of the influence of non-financial reporting frameworks, such as the <IR> Framework that uses a financial materiality perspective, on sustainability reporting. The findings reveal that the practical implementation of the <IR> Framework resulted in sustainability reporting outcomes that deviated from theoretical expectations. Exploring the materiality concept that underscores sustainability-related disclosures by companies using the <IR> Framework is useful for predicting the effects of adopting the Sustainability Disclosure Standards issued by the International Sustainability Standards Board, which also emphasises financial materiality. Social implications Despite an emphasis on financial materiality in the <IR> Framework, companies continue to offer substantial impact-material information, implying the potential for companies to balance both financial and broader societal concerns in their reporting. Originality/value While prior research has delved into the practices of regulated integrated reporting, especially in the unique context of South Africa, this study focuses on voluntary adoption, attributing observed practices to intrinsic company motivations. To the best of the authors’ knowledge, it is the first study to explicitly explore the nature of materiality in sustainability-related disclosure. The research also introduces a nuanced understanding of contextual factors influencing sustainability reporting.

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Section: Discussioncontrasting

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Setia,

Abhayawansa,

Joshi

et al. 2024

MEDAR

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“…There are few studies on assurance and sustainability reporting in literature. The study of Igwe et al (2023) examined the literature review of SRP in Africa, the authors decried low studies on assurance and sustainability reporting in Africa. However, there are other studies in other countries on this study.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The limited research that does exist focuses more on sub-continental nations such as Bangladesh (Momin and Parker, 2013), Nigeria (Erin et al , 2021) and Sri Lanka (Dissanayake et al , 2016). Also, the few studies that examined the quality of sustainability reporting neglected the subject of sustainability assurance (Igwe et al , 2023; Erin et al , 2021). Also, in recent times, there has been a call for more research in the area of non-financial reporting in sub-Saharan Africa (Tilt et al , 2021; Wachira and Mathuva, 2022).…”

Section: Introductionmentioning

confidence: 99%

Corporate board, assurance and sustainability reporting practices: a focus on selected African countries

Erin,

Ackers

2024

JAOC

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Purpose In recent times, stakeholders have called on corporate organizations especially those charged with governance to embrace full disclosure on non-financial issues, especially sustainability reporting. Based on this premise, this study aims to examine the influence of corporate board and assurance on sustainability reporting practices (SRP) of selected 80 firms from 8 countries in sub-Saharan Africa. Design/methodology/approach To measure the corporate board, the authors use both board variables and audit committee variables. Also, the authors adapted the sustainability score model as used by previous authors in the field of sustainability disclosure to measure SRPs. The analysis was done using both ordered logistic regression and probit regression models. Findings The results show that the combination of board corporate and assurance has a positive and significant impact on the sustainability reporting practice of selected firms in sub-Saharan Africa. Practical implications The study places emphasis on the need for strong collaboration between the corporate board and external assurance in evaluating and enhancing the quality of sustainability disclosure. Originality/value The study bridged the gap in the literature in the area of corporate board, assurance and SRP of corporate firms which has received little attention within sub-Saharan Africa.

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“…The conflicting evidence on the relationship between sustainability reporting and financial performance provides an avenue for further interrogations into the matter. Literature show that studies on the subject matter have been sparse in the African context because most firms in Africa have not fully embraced the concept of sustainability reporting (Igwe et al, 2023). This current study therefore used South Africa, which has the most developed sustainability reporting culture in Africa (Tilt et al, 2020), to provide more empirical evidence on the subject from the African perspective.…”

Section: Introductionmentioning

confidence: 99%

Sustainability reporting and corporate financial performance: Moderating effect of financial slack resource

Ameyaw,

Ramakrishnan,

Jayamana

2023

IJARAFMS

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Considering the growth of sustainability reporting practices over the recent years in South Africa, we investigated the relationship between sustainability reporting and financial performance of South African listed firms. We also investigated the moderating effect of financial slack resource (FSR) on the link between sustainability reporting and financial performance. A 10-year panel data of 110 firms were sourced from the Refinitiv Eikon database. We applied Feasible Generalised Least Squares (FGLS) regression and Correlated Panels Corrected Standard Errors (PCSE) regression (as robustness check) on balanced panel data and found a significant negative relationship between sustainability reporting and return on asset (ROA). We also found that the relationship between sustainability reporting and Tobin's Q was positive but insignificant. Moreover, while a high level of financial slack resource has a significant positive moderating effect on the relationship between sustainability reporting and financial performance, a low level of it has a negative moderating effect on this relationship. The negative association between sustainability reporting and financial performance may be explained that the firms have not been able to strategically execute their sustainability initiatives to the levels required to get the expected benefits.

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Sustainability reporting in Africa: A systematic review and agenda for future research

Cited by 6 publications

References 147 publications

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Shifting perspectives: unveiling the dual nature of sustainability materiality in integrated reports

Corporate board, assurance and sustainability reporting practices: a focus on selected African countries

Sustainability reporting and corporate financial performance: Moderating effect of financial slack resource

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