The digitalization of sustainability reporting processes: A conceptual framework

Abstract

Building on the contingency theory, the paper aims to shed light on the contribution provided by technological innovation on sustainability reporting quality. A fuzzy expert system (FES) was developed to evaluate the cumulative effects related to the adoption of digital devices in sustainability reporting practices. The analysis underlined the enabling role covered by Sustainable Enterprise Resources Planning (S‐ERP) systems on sustainability reporting processes. In detail, we found that the disclosure of environmental information using technological platforms can lead analysts to a more accurate evaluation.

Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco‐controls

“…For instance, using enterprise resource planning software, management can easily monitor the salary expenses at a particular factory producing a particular variant of a product. (Accounting scholars such as Pizzi et al [2023]), who studied sustainability reporting quality using a 'fuzzy expert system,' have confirmed the effect of the Global Reporting Initiative (GRI, 2022) on sustainable enterprise resource planning (S-ERP) usage by firms to digitalise their processes and routines and capture accurate data. This way, the firm can plan and supervise efficiently.…”

“…Accounting standard-setters have identified an urgent need to bridge the gap between financial and non-financial reporting. In 2022, the European Sustainability Reporting Standards (ESRSs) were released by the European Financial Reporting Advisory Group (EFRAG; Pizzi et al, 2023). Prior to this, companies had used voluntary disclosures of sustainability information to address the needs of stakeholders (Venturelli et al, 2022).…”