Sustainable development goals and assurance of non-financial information reporting in Spain

Abstract

Purpose This paper aims to investigate the relationship between corporate reporting on issues related to the Sustainable Development Goals (SDG) and the quality of non-financial information (NFI) corroborated by different types of assurors. Design/methodology/approach The study methods used include logistic regressions, focusing on data for Spanish listed companies in 2017–2018. Findings Analysis shows that companies are more likely to report SDG-related performance when their sustainability report is assured. This association remains constant irrespective of the nature of the assurance, which only became mandatory in Spain following the entry into force of Act 11/2018 in this respect. Moreover, companies that hire KPMG or PwC (two of the big four accounting firms) as assurance providers are more likely to report SDG-related performance than those that hire non-accounting firms. Finally, companies with higher quality assurance statements are more likely to address SDG-related matters. Research limitations/implications The authors believe the findings reported in this paper will help decision-makers better understand the quality of organisations’ contributions towards achieving the SDGs. Furthermore, this paper has implications for stakeholders, policymakers, academics and assurance providers concerning the relationship between SDG-related reporting and the quality of NFI. Originality/value To the best of the authors’ knowledge, no prior research has been undertaken to analyse the relationship between SDG-related company reporting and the assurance of NFI.

Sustainability as a strategy base in Spanish firms: Sustainability reports and performance on the sustainable development goals

“…Table 3 displays the results for percentage of information on each of the 17 SDGs presented by the companies in each sector, as well as the general average by sector and the average information for each SDG. Note that 100% of these companies address the SDGs in their sustainability reports, a value higher than those obtained by Sierra García et al (2022) and Martínez‐Ferrero and García‐Meca (2020).…”

“…Numerous studies have analyzed the credibility of sustainability reports (ESG) and their assurance or verification, achieving consensus that external verification of the content of these reports improves companies' business reputation and global reliability and credibility (García‐Sánchez, 2021). Studies by Pflugrath et al (2011), Perego and Kolk (2012), Cheng et al (2015), Fernandez‐Feijoo et al (2016), García‐Sánchez (2021), and Sierra García et al (2022) hold that reliability of and trust in reports is greater when they are verified by an independent entity.…”

“…As multiple studies argue (Gillet‐Monjarret, 2018; Sierra García et al, 2022; Sierra‐Garcia et al, 2018; Tyson & Adams, 2020) it is crucial to research verification of sustainability reports and find alternative ways of improving their credibility. Analyzing the sustainability reports of Spanish companies for the 3 years since the Non‐Financial Information Law went into effect can make an important contribution to this field, as this law that requires companies to submit verified or audited ESG reports.…”

“…It seeks specially to determine the important dimension of Corporate Sustainability Reports that enables us to understand “how” and “to what extent” the SDGs can strengthen business strategy and compliance with the Climate Change and Energy Transition Law, or the Spanish Circular Economy Strategy, based on the philosophy of the 2030 Agenda. Researchers expect companies to play an important role in making the SDGs a reality by publishing companies' progress toward them in their ESG reports and through the GRI indicators (Rosati & Faria, 2019a, 2019b; Sierra García et al, 2022).…”

Assessing the implementation of sustainable development goals: does integrated reporting matter?

“…Companies must guarantee that their operations do not obstruct the agenda (Sudirman and Rifai, 2021). Once sustainable practices are used, companies can disclose sustainability efforts and outcomes to their stakeholders (Shah et al , 2022; Sierra García et al , 2022). SDGs disclosure is crucial for businesses; it allows them to provide their sustainability successes to stakeholders and, in doing so, gain additional investment and an excellent reputation and legitimacy (Silva, 2021).…”