Thirty years of sustainability reporting : insights, gaps and an agenda for future research through a systematic literature review

Abstract

This paper examines the progress, key themes, and future directions in sustainability reporting, aiming to identify critical insights, gaps, and research opportunities to enhance its effectiveness and impact. A comprehensive review was conducted, analyzing peer-reviewed articles on the evolution, implementation, and outcomes of sustainability reporting across various sectors and regions over the past thirty years. This review highlights a shift from an initial focus on environmental disclosures to a broader inclusion of social and governance issues. Despite advancements, notable gaps persist, such as the lack of standardized reporting frameworks, challenges in data collection and comparability, and limited understanding of the relationship between sustainability reporting and corporate financial performance. Emerging areas of future research include the need to develop standardized measurement tools tailored to different industries, explore the long-term effects of sustainability reporting on corporate behavior and performance, and investigate effective strategies for stakeholder engagement to enhance the credibility and relevance of sustainability reports. The introduction of IFRS S1 and S2 offers opportunities to address some challenges, but their full impact requires further exploration. This paper synthesizes existing literature, outlines significant challenges, and offers a roadmap for future research that will help scholars, practitioners, and policymakers advance sustainability reporting practices.