Purpose This study aims to investigate the relationship between sustainability performance and sustainability rankings in higher education institutions. It explores the existence of a bidirectional relationship, assessing how sustainability performance influences ranking outcomes and how rankings, in turn, affect institutional behavior and performance. Design/methodology/approach The authors collected external sustainability data from Italian universities and applied the Granger causality test to examine whether a bidirectional relationship exists with the UI GreenMetric ranking. Subsequently, the authors used dynamic panel models to investigate the determinants of this relationship. Findings The findings reveal a bidirectional relationship between sustainability rankings and sustainability performance: rankings not only reflect institutional outcomes but also actively shape them. On the one hand, rankings effectively capture certain dimensions of performance; on the other, they are associated with improvements in the metrics they measure, while other sustainability dimensions may decline or receive less attention. Practical implications University managers should critically assess how rankings influence strategic decisions to avoid prioritizing short-term ranking gains over long-term sustainability goals. Social implications University rankings are widely used by policymakers as proxies for performance in funding allocation and policy design. However, uncritical reliance on these tools may lead to suboptimal decisions and incentivize strategic manipulation, highlighting the need for greater public oversight, more transparent methodologies, and the development of shared and reliable sustainability metrics. Originality/value Sustainability rankings have emerged alongside traditional rankings to assess institutional quality in this area. Originally created to measure university quality, rankings can also influence institutional priorities. However, while traditional rankings and their effects have been widely studied, sustainability rankings remain relatively unexplored.
Purpose Mobilizing private capital toward sustainable development requires understanding how sustainability-related information influences individual investment decisions. While prior research has examined investors’ sustainable preferences, less attention has been paid to how such information is mediated in practice. This study aims to investigate the role of financial advisors as key informational intermediaries between corporate environmental, social, and governance (ESG) disclosures and private wealth allocation. Design/methodology/approach Using survey data from 800 Italian high-net-worth individuals (HNWIs), the study analyses actual portfolio holdings across five asset classes, including sustainable investment products. Logistic regression models examine the determinants of SI ownership, complemented by mediation analyses assessing how advisor interactions and sustainability-related information shape trust and perceived effectiveness. Findings Sustainable investment adoption among HNWIs depends not only on sustainability orientation, but critically on perceptions of credibility and effectiveness of sustainability claims. Financial advisors play a central role in shaping these perceptions by mediating sustainability information. Regulatory-driven disclosures increase exposure to sustainable products, while richer and discretionary sustainability communication is more strongly associated with sustainable portfolio allocation. Practical implications Enhancing advisors’ ESG competencies and improving the clarity and transparency of sustainability ratings can enhance effective communication with private investors. Social implications By clarifying how sustainability information is translated into investment decisions, the study informs efforts to reorient private wealth toward sustainable development goals. Originality/value The study contributes to sustainability accounting, management and sustainable finance research by highlighting financial advisors as organizational intermediaries linking ESG disclosure to private capital allocation.
Purpose This study aims to explore how fintech influences corporate strategic environmental, social and governance (ESG) behaviour (CSB), which refers to strategic inconsistencies between ESG disclosure and actual practices, including greenwashing and brownwashing. Design/methodology/approach Using panel data from Chinese A-share listed companies from 2011 to 2023, this study constructs a CSB index and applies fixed effects, mediation and threshold models to examine the impact of fintech on CSB and the impact mechanisms. Findings Fintech significantly suppresses CSB. While its inhibitory effect on greenwashing is particularly pronounced, its impact on brownwashing remains empirically tentative. Mechanism analyses reveal that this effect operates through both funding and governance channels. Fintech also helps correct the structural mismatches inherent in traditional finance and serves a gap-filling function in regions with underdeveloped financial infrastructure. Furthermore, the impact of fintech on CSB is non-linear, with the strongest effect under moderate regulation and low competition. Practical implications The results indicate that fintech serves as a critical governance tool for increasing the credibility of ESG disclosure and decreasing strategic misreporting. Firms should leverage fintech to enhance disclosure authenticity and ESG risk management. Financial institutions and regulatory bodies can use digital technologies to enable more accurate green credit allocation and dynamic regulatory oversight. Social implications By enhancing transparency and traceability, fintech promotes ESG information fairness and environmental governance justice, improves the efficiency of capital allocation and contributes to the restoration of social trust and sustainable development foundations. Originality/value This study integrates greenwashing and brownwashing within a unified CSB framework, revealing institutional arbitrage risks in ESG disclosure. By introducing the lens of “fintech empowerment”, this study advances the understanding of the role of fintech in curbing sustainability manipulation, and it contributes to the broader literature on digital governance and sustainable finance.
Purpose The aim of this contribution is to offer an economist’s perspective on multi-capital accounting development. The author reflects on the use of multi-capital models in his own experience and stresses the areas of multi-capital accounting that are still in contention. Design/methodology/approach The author reviews four streams in the literature to emphasise the characteristics that multi-capital accounting should have. The author then reviews four representative models along the weak–strong sustainability continuum to reflect on their current limits and perspectives. The author finally offers some criticism of multi-capital accounting and stresses the direction it could take. Findings The author observes that there is a great variety of multi-capital accounting models that offer diverging perspectives on sustainability. Issues related to the role of physical stocks, physical limits, sustainability paths and valuation are treated differently across models. As a result, multi-capital models are not fit for every institutional context and might be better suited for regional-level or ecosystem accounting. Research limitations/implications The author suggests that authors from the pragmatic and critical schools of accounting could usefully work together to overcome the limitations of existing models, notably the joint accounting of the cost of action and the cost of inaction. Practical implications Authors of multi-capital models should work together on efforts to scale up their method in suitable contexts. More work could also be done on altering financial accounting in line with sustainability accounting. A necessary first step here would be the compilation of a science-based database for asset, liabilities, impact and dependencies valuation. Social implications Multi-capital accounting could be applied to new bodies in charge of physical stock management. Governments aiming for the development of multi-capital accounting should consider models fit for their own goals. Multi-capital accounting could also support global coalitions for stewardship of critical ecosystems involving diverse stakeholders. Originality/value This paper offers an original viewpoint on multi-capital accounting.
Purpose This study aims to examine the heterogeneity in behavioural characteristics of retail investors regarding sustainable investments, identifying patterns of convergence and divergence in sustainability-oriented market behaviours. By developing and validating specialized indices for environmental, social and governance (ESG) preferences, investor sentiments, performance perceptions, investment intentions, subjective norms, cognitive biases and greenwashing concerns, this research investigates how socio-demographic factors influence these indices through assessing heterogeneity across investor segments. Design/methodology/approach The authors develop and validate five ESG behavioural indices capturing multiple dimensions of sustainable investment behaviour. Data were collected through a comprehensive survey of 511 active retail investors in the Indian stock market. Heterogeneity analysis was conducted to identify variations in behavioural characteristics across the sample. The authors use quantile regression analysis to assess heterogeneity across demographic segments (age, income, gender, employment, education and investment experience), examining how relationships vary across the conditional distribution of ESG behavioural dimensions. Findings The analysis reveals heterogeneity in ESG investment behaviour across demographic segments. Age consistently reduces ESG engagement across all dimensions, while higher income enables selective sustainability preferences but increases investment irrationality. Gender creates divergent ESG orientations, with distinct patterns in environmental versus social priorities. Employment status and education facilitate ESG adoption through stability and social learning mechanisms, whereas investment experience paradoxically generates both sophisticated awareness and fundamental skepticism. Critically, performance perceptions emerge as the primary determinant mediating demographic influences on ESG preferences, establishing that sustainability investment behaviour is instrumentally rational rather than value-expressive in emerging markets. Practical implications The findings provide insights for enhancing sustainable investment participation. Financial institutions should develop targeted educational programmes to address knowledge gaps, as awareness significantly influences ESG preferences. Recognizing investor heterogeneity is essential - younger, high-income investors respond to performance narratives, while older investors seek transparency. Addressing greenwashing concerns through standardized reporting and third-party certifications builds trust. Leveraging social influence through choice architecture and behavioural nudges can overcome decision-making barriers. Income-based strategies should include structured ESG portfolios for high-income investors prone to impulsivity, while providing educational support on stable returns for price-sensitive retail investors in emerging markets. Social implications The identified behavioural market failure in sustainable investing has important implications for the development of sustainable finance policies in emerging markets. Addressing the divergence in sustainability views could accelerate the transition towards more sustainable capital markets and contribute to broader sustainability goals. The findings highlight the need for targeted initiatives and policy interventions to bridge the gap between ESG preferences and actual investment behaviour. Originality/value This study advances sustainable finance through three contributions. First, the authors develop and validate multidimensional ESG behavioural indices capturing preferences, sentiments, perceptions, intentions and irrationality among retail investors. Second, the authors establish demographic heterogeneity as a structural market characteristic challenging the homogeneous investor assumption. Third, the authors theorize performance primacy as the fundamental mechanism driving ESG preference formation, demonstrating instrumental rationality rather than value-expression. These frameworks, validated through quantile regression analysis, provide actionable insights for policymakers and practitioners designing targeted interventions across demographically diverse investor segments in emerging markets.
Purpose This study aims to examine whether Africa is falling behind or leading the way in achieving the Sustainable Development Goals (SDGs) by analyzing how governance capacity is associated with SDG performance across African regions. Drawing on Governance Network Theory (GNT), the study moves beyond general claims that governance matters to examine how governance–SDG relationships vary across goals and territorial contexts. Design/methodology/approach The study uses a quantitative panel data design covering 46 African countries from 2015 to 2022. SDG performance is measured using the Sustainable Development Report index and SDG trend scores. Governance capacity is proxied by the Worldwide Governance Indicators (WGI) and analyzed using pooled panel regressions and ordered probit models with regional interaction effects to capture heterogeneity across African subregions. Because cross-country data do not allow direct observation of governance networks, the WGI dimensions are interpreted as network-enabling governance capacities, and the results are interpreted through a GNT lens rather than as direct measures of network structure. Findings The results show that governance capacity is positively associated with overall SDG performance, but the strength of this association varies significantly across SDGs and regions. Governance effects are strongest for coordination-intensive goals, notably quality education (SDG 4), gender equality (SDG 5), climate action (SDG 13) and partnerships for the goals (SDG 17). Persistent underperformance is observed in poverty (SDG 1), health (SDG 3) and inequality (SDG 10)-related goals, highlighting governance–performance decoupling in some regions. Practical implications The findings suggest that SDG strategies in Africa should prioritize strengthening coordination capacity, multi-actor collaboration and regional governance networks, rather than relying on uniform governance reforms. Regionally tailored action maps can enhance SDG delivery effectiveness. Social implications By identifying where and why governance capacity translates unevenly into SDG outcomes, the study informs policymakers, development partners and civil society actors seeking inclusive and context-sensitive pathways to sustainable development in Africa. Originality/value The study advances SDG research by operationalizing GNT in a multi-regional African context by showing that governance–SDG relationships in Africa are conditional, regionally embedded and goal-specific, rather than uniformly positive.
PurposeThis study aims to investigate the impact of public environmental supervision on corporate greenwashing behavior.Design/methodology/approachUsing manually collected data from China's 12369 environmental complaint platform, this study constructs a measure of public environmental supervision and match it with a sample of A-share listed firms in heavily polluting industries over the study period. Using panel regression models, this study conducts empirical tests and address endogeneity concerns through a battery of robustness checks.FindingsPublic environmental supervision exerts a statistically and significantly inhibitory effect on corporate greenwashing. This effect is further amplified by formal government environmental regulation, indicating a complementary and synergistic relationship between informal societal oversight and formal institutional enforcement. Mechanism analysis reveals that public supervision curbs greenwashing through three distinct channels: alleviating information asymmetry, stimulating substantive green investment and enhancing executives' environmental awareness and ethical norms. Furthermore, direct public participation channels (e.g. WeChat submissions and telephone complaints) are more effective than indirect advocacy (e.g. proposals from People's Congress deputies). The inhibitory effect is also more pronounced in regions with higher public environmental sensitivity and stronger institutional capacity to respond to public demands.Practical implicationsFindings provide actionable implications for policymakers and market participants seeking to mitigate information asymmetry in green finance market. They validate a synergistic governance model that integrates public oversight with government enforcement, which is crucial for advancing China's dual-carbon transition goals. In addition, the results underscore the need to expand the environmental responsibility dimension of corporate governance systems with Chinese characteristics, encouraging firms to align symbolic environmental commitments with substantive action.Social implicationsBy demonstrating how state-led institutionalized public supervision can aggregate fragmented societal environmental demands into targeted governance pressure, this study provides a viable paradigm for reconciling corporate private interests with public environmental welfare, contributing to the broader societal objective of achieving sustainable development and enhancing the legitimacy of market-oriented economic transition in emerging economies.Originality/valueThis study contributes to the literature on informal environmental governance by illuminating the information aggregation-government responsiveness pathway through which institutionalized public supervision operates in a transitional economy context. It develops and empirically validates an analytical framework for public-government collaborative governance of strategic environmental behaviors, moving beyond the traditional single-actor governance paradigm to highlight the interdependence of formal and informal institutions.
Purpose - Drawing on upper echelons and institutional theory, this study aims to examine how top management team (TMT) composition - gender diversity, educational background and national diversity - affects Sustainable Development Goals (SDG) disclosure by multinational enterprises (MNEs) in Asia. It also examines how home-country competitiveness (Home-Country Competitiveness (HCC)) and national SDG performance (Country-level Sustainable Development Goals performance (C-SDGs)) moderate these relationships. Design/methodology/approach - The study uses a data set of 5,107 firm-year observations spanning the period from 2015 to 2023, encompassing MNEs across 16 Asian economies and 11 industry sectors. Firm-level SDG disclosure scores were developed through detailed content analysis. The authors used multilevel generalized linear mixed effects modeling to test the hypothesized relationships using Stata 18 (StataCorp LLC, College Station, TX). Findings - TMT composition significantly influences SDG disclosures. Among the three diversity dimensions, educational and national diversity have a stronger impact than gender diversity. The moderating variables - HCC and C-SDGs - enhance the positive effects of TMT characteristics on SDG reporting. In addition, the positive influence of gender diversity is amplified when combined with higher levels of TMT education. Practical implications - Both microlevel leadership attributes and macrolevel institutional environments are crucial for corporate sustainability transparency. Firms seeking to improve SDG disclosures should diversify TMTs and align strategies with their home country's institutional context. Social implications - Firms seeking to improve SDG disclosures should diversify TMTs and align strategies with their home country's institutional context. Originality/value - This study bridges organizational leadership traits with country-level institutional factors to explain variations in SDG disclosure among Asian MNEs, advancing research on corporate sustainability, governance and international business in emerging markets.
PurposeThe purpose of this paper is to explore the influence of board gender diversity on environmental decoupling – including both greenwashing and brownwashing – viewed as a critical barrier to corporate accountability and sustainable development. Design/methodology/approachThis study analyzes a sample of US listed companies from 2011 to 2021, employing various methodological approaches and robustness tests to ensure the accuracy and reliability of our results. FindingsThe results highlight that female directors can increase greenwashing and reduce brownwashing. This effect is amplified in environmentally sensitive industries where the pressure for sustainable development is higher. However, in firms with low levels of environmental, social and governance (ESG) controversies, board gender diversity may contribute to greenwashing. Practical implicationsThe findings provide insights for firms to understand what effect board gender diversity has on substantive environmental actions. For policymakers, results suggest that gender measures must be complemented by robust accountability mechanisms to effectively mitigate the risks of environmental decoupling and support sustainable development. Social implicationsThis study underscores the potential unintended consequences of female board representation and highlights the need to address decoupling to protect society from misleading information and thereby ensure that corporate transparency contributes to genuine sustainable development. Originality/valueMoving beyond a generic ESG focus, the study provides a more nuanced understanding of how board gender diversity affects environmental decoupling, positioning it as a critical factor that determines corporate transparency and its ultimate contribution to sustainable development.
PurposeThis paper aims to examine how auditors navigate the legal principle of double materiality under the European Corporate Sustainability Reporting Directive (CSRD). It examines how regulatory ambiguity and limited assurance shape professional judgment. The study applies the Sustainability Expectation Gap (SEGAP), an extension of the Audit Expectation Gap (AEG), to explain emerging legitimacy tensions in sustainability assurance.Design/methodology/approachSeventeen semistructured interviews with auditors in Germany and Austria were examined using grounded thematic analysis.FindingsRegulatory aspirations and auditor capabilities remain structurally misaligned. While double materiality is formally embedded, auditors' professional judgment remains anchored in financial-materiality logics. Sustainability assurance is confined to management-defined audit scopes, limiting engagements to plausibility-based rather than a risk-oriented audit approach. These constraints cumulatively widen the SEGAP by eroding procedural and pragmatic legitimacy, while moral legitimacy remains fragile.Research limitations/implicationsThe study focuses on auditor perspectives in jurisdictions, where CSRD transposition is evolving; broader stakeholder perspectives are not examined. Findings indicate that sustainability assurance contributes primarily to SDG 16 by strengthening transparency and accountability, while its broader contribution depends on methodological advancement toward a risk-oriented audit approach. Future research should therefore examine user perspectives and analyze auditors report on sustainability statements as communicative artifacts shaping the interpretation of assurance.Practical implicationsFindings inform auditors, companies, and regulators about structural constraints in sustainability assurance and are relevant for jurisdictions introducing mandatory sustainability assurance regimes.Social implicationsThe study informs debates on the Omnibus Proposal by showing how symbolic compliance persists, as the transition toward assurance remains constrained by a reporting-centered regime.Originality/valueThe SEGAP framework explains how systemic conditions weaken double materiality and erode legitimacy, highlighting institutional limits of assurance in advancing sustainability goals.
Purpose An increased frequency and intensity of climate-related natural catastrophes has created significant challenges for both the private and the public sector. Existing risk-sharing approaches are reaching their efficacy limits, pushing governments to take on an increasing share of the burden as private-sector solutions become less affordable or available. This paper aims to assess whether adding a European, loan-based backstop to the catastrophe risk sharing hierarchy can expand private insurance capacity, ensure post event claims payment, and reduce reliance on ad hoc fiscal support. Design/methodology/approach The authors present a conceptual design of a pan European insurance pool backstopped by a loan financed facility. They specify cost of capital mechanics for the insurance industry and illustrate the approach by comparing net present costs (NPCs) of backstop loans against capital market refinancing. Findings A pan European pool materially increases diversification across hazards and jurisdictions, lowering concentration risk and capital needs and enabling insurers to underwrite more catastrophe risk – thereby narrowing the protection gap. Net present cost analysis shows that backstop loans are typically more capital efficient than raising equity (and often competitive with debt), allowing insurers to fund claims and smooth costs over time while supporting additional business. Research limitations/implications This paper provides an economic rationale for the establishment of a European backstop facility but leaves some details for further research. In particular, three aspects deserve further in-depth elaborations: the regulatory treatment of the insurance pool, the integration of national solutions into a broader European scheme, and the capacity enhancement following the introduction of a European backstop. Practical implications Proof of concept pilots specifying eligibility, triggers, pricing and conditionality can produce evidence for researchers and policymakers, guiding evaluation, calibration and staged roll out of a European backstop model. Social implications Broader availability and affordability of catastrophe cover for households, firms and governments; By strengthening insurance-based disaster risk financing, the proposed European backstop facility contributes to sustainable development by enhancing economic resilience, preserving public fiscal capacity and enabling climate adaptation, thereby supporting the long-term stability and sustainability of affected economies. Originality/value Advances a European level backstop that operates through a common insurance pool, explicitly targeting fiscal neutrality while crowding in private risk bearing.
PurposeThis paper aims to investigate the dynamic interaction between global sukuk markets and climate policy uncertainty (CPU), examining how Islamic financial instruments respond to climate-related policy shifts. It explores the potential of Islamic finance to support sustainability-linked investment and contribute to ecological resilience by analyzing sukuk performance in the context of evolving environmental policies. As a result, it is aligned with the Sustainable Development Goals (SDGs), specifically SDG 13 (Climate Action), SDG 9 (Industry, Innovation, Infrastructure) and SDG 17 (Partnerships for the Goals). Design/methodology/approachThe analysis uses continuous wavelet transform methods to examine time–frequency relationships between CPU and 15 sukuk indices across diverse regions from 2010 to 2024. This technique captures both short- and long-term comovement patterns, which allows an in-depth understanding of the market response to evolving policy dynamics. The results reveal nuanced responses of sukuk markets to crisis-driven events and global climate policy signals. FindingsThe results reveal that sukuk markets exhibit heightened sensitivity to climate policy shifts, particularly during global environmental events such as conference of the parties (COP) summits and the COVID-19 pandemic. Sukuk are especially responsive over longer time horizons, suggesting they can absorb and reflect structural sustainability concerns and are well positioned to advance sustainable finance. These findings suggest that sukuk serve as asset-backed, adaptable instruments that promote intergenerational equity, one of the principles of sustainable development described by the United Nations. Practical implicationsGlobal and regional sukuk have the potential to act as effective hedging instruments during periods of heightened climate policy uncertainty, especially as environmental awareness grows and green sukuk markets expand. These findings are particularly relevant for countries aiming to integrate sukuk into their sustainable development strategies, notably those facing high climate vulnerability. To support this, regulatory bodies should ensure that sukuk issuance and investment practices align with established environmental, social and governance standards. Social implicationsThe findings offer valuable insights for ethical and faith-based investors who seek to align their portfolios with environmental sustainability and social responsibility. It reinforces the role of Islamic finance in advancing inclusive, values-driven investment practices. Originality/valueThis study presents a novel analysis of the relationship between CPU and major sukuk markets. It fills a critical gap in the sustainable finance literature by demonstrating how sukuk can serve as a bridge between Islamic finance and climate-aligned investment. In doing so, the study offers a credible pathway toward inclusive and resilient financial systems grounded in the principles of the Islamic Moral Economy framework. The paper provides original insights into how Islamic financial instruments directly contribute to achieving SDG 13, SDG 9 and SDG 17.
PurposeThis study aims to explore the link between aspirational talk and action in biodiversity reporting to identify potential decoupling practices.Design/methodology/approachContent analysis is applied to 84 sustainability reports from companies in sectors with significant biodiversity impacts. A structural equation model based on partial least squares (PLS) examines the relationship between aspirational talk and action, as well as the influence of increased national-level commitment to the Sustainable Development Goals (SDGs) on the consistency of information.FindingsCompanies generally provide limited biodiversity disclosures. However, when disclosed, aspirations connect with actions, suggesting no content decoupling. In SDG-committed environments, companies adopt counter-coupling strategies in response to stakeholder pressures.Research limitations/implicationsThe analysis focuses on disclosed management practices and action plans rather than on the effectiveness of the organizational actions themselves. Furthermore, the study does not assess the quality of the disclosed information or the impact of the proposed initiatives on species conservation.Practical implicationsFindings can help policymakers develop regulatory frameworks promoting consistent reporting and biodiversity integration into corporate strategy. Preparers should connect aspirational talk with internal management practices and biodiversity performance data.Social implicationsThis study has implications for enhancing the emancipatory nature of corporate biodiversity reporting.Originality/valueThis study makes a dual contribution by analyzing decoupling in biodiversity reporting and examining the influence of institutional pressures at the national level on decoupling practices.
PurposeThis study aims to document and theoretically interpret the near-universal practice of appointing the incumbent financial auditor(s) to also provide mandatory assurance for sustainability reports under the European Union Corporate Sustainability Reporting Directive (CSRD).Design/methodology/approachBased on observations from a sample of 268 EURO STOXX 600 companies, this research documents the frequency of alignment between financial and sustainability assurance providers. The central observed pattern is analyzed using established theoretical frameworks.FindingsThe study reveals near-universal alignment (263 out of 268 firms), where firms bundle CSRD sustainability assurance with their incumbent financial auditor(s). Furthermore, analysis shows engagements involving Big 4 firms accounted for 97% of companies, indicating extreme market concentration. This alignment suggests efficiency and institutional drivers. No accredited Independent Assurance Service Providers (IASPs) were identified.Practical implicationsThe findings inform stakeholders about extreme market concentration and the current lack of provider alternatives, with implications for assurance quality, provider choice and independence. Regulators, standard-setters and companies need this evidence to develop a more competitive assurance market aligned with CSRD's objectives.Social implicationsCredible, independent assurance enables capital to flow toward activities that drive genuine sustainable development, funding the physical, technological and social transitions required for progress on goals such as climate action, clean energy and responsible consumption.Originality/valueProviding baseline documentation of CSRD assurance market structure, this research applies theoretical lenses to interpret this extreme market convergence and service consolidation under incumbents.
PurposeCorporate greenhouse gas (GHG) emissions disclosures increasingly inform investment, procurement and policy decisions, but when emissions are reported without acknowledging uncertainties, it risks misleading stakeholders, misdirecting capital and undermining climate action. This study aims to examine whether and how firms report emissions uncertainty in practice. Design/methodology/approachThe study reviews uncertainty analysis requirements in measurement and disclosure standards, and analyses sustainability reports from 2,636 listed firms using automated text analysis and manual review to identify whether and how uncertainty was disclosed. FindingsWhile measurement and disclosures standards have optional requirements for uncertainty analysis, the findings show that of the 2,102 reports that disclosed emissions, 2,052 (97.6%) reported only single-value estimates without uncertainty analysis. Only 50 (2.4%) explicitly discuss the impact of relevant uncertainties on GHG measurements: 38 qualitatively, and just 12 (<1%) quantitatively. This is consequential as some firms claim small year-on-year reductions (that may sit within much larger unreported ranges of uncertainty. Research limitations/implicationsThe study focuses on publicly available reports from major stock exchanges, mainly in North America and Europe, which may not reflect all global practices. Automated text analysis may have misclassified some reports, although manual checks helped reduce errors. Practical implicationsOptionality should be removed in measurement standards (GHG protocol) and disclosure standards (e.g. GRI, IFRS, ESRS). The lack of uncertainty analysis in disclosures may impede decision-making and drive misallocation of capital and resources to decarbonisation projects based on uncertain data. Social implicationsWithout acknowledging uncertainty, firms reduce the transparency and legitimacy of their emissions disclosures. This undermines stakeholders’ ability to hold firms to account for their climate impacts and weakens the policy feedback essential for effective sustainable development. Originality/valueTo the best of the authors’ knowledge, this study provides the first large-scale empirical evidence that the absence of uncertainty analysis is widespread in corporate emissions disclosure.
PurposeThis paper aims to examine how European Sustainability Reporting Standards (ESRS) require green-transition reporting, in particular how the concepts of time and space/place are mobilized and connected with directions (targets), responses (actions and resources) and impacts and how changes in ESRS or sustainability-reporting practice may catalyze decarbonization.Design/methodology/approachThis paper regards target-setting and transition plans as sustainability frames shaped by temporal markers connected to material effects (externalities) and emphasize that mechanisms connecting time and space/place, and thus constituting traces, are promising routes toward accountability for externalities.FindingsThis paper highlights shortcomings in the traces offered by ESRS in response to climate-change challenges. These shortcomings are related predominantly to the scant focus on understanding how challenges can be addressed through future responses. These shortcomings will most likely persist following the forthcoming ESRS revision. This paper suggests other ways of linking material responses with material impacts over time to establish and thus incentivize short-term actions taken in response to grand challenges.Practical implicationsDisclosing the feasibility (uncertainty) of future decarbonization responses and explaining the speed of decarbonization through decarbonization curves and cumulated emissions over time would provide a stronger basis than the current regime does for holding companies accountable.Social implicationsThe European sustainability-reporting regime requires effort from regulators, preparers and stakeholders. This study identifies critical shortcomings in this endeavor.Originality/valuePrevious studies have focused on European Union and European Financial Reporting Advisory Group efforts regarding the standardization of overarching principles. This study focuses on ESRS and sustainability-reporting content and their potential for driving the green transition.
PurposeThis paper aims to examine the level of financial literacy of the population in Spain and the evolution of the self-perceived financial level and the actual knowledge of basic financial matters. Education alleviates economic poverty and social exclusion; therefore, the study of financial literacy is especially relevant and the analysis of vulnerable groups' financial literacy may help us to establish guidelines in future financial education plans.Design/methodology/approachThe study combines an analysis of descriptive statistics of the questions from the Survey of Financial Competences carried out by the Bank of Spain in 2016 and 2021, an ordinal regression to analyze the relationship between financial literacy and financial self-awareness (interest rate, inflation and risk diversification) and a t-test for difference of means according to gender, age and income band to estimate the difference between population groups identified by literatures as potentially vulnerable. The number of observations is 8,554 in 2016 and 7,764 in 2021.FindingsResults suggest that the level of basic financial literacy in Spain is acceptable and there is a positive trend between 2016 and 2021. However, more complex questions show a lack of skills in transversal subjects, especially mathematics. Findings indicate that the most vulnerable groups include women, older adults and low-income individuals, as women tend to underestimate their financial knowledge, older adults experience greater difficulty with complex financial concepts and low-income individuals face structural barriers that limit their access to financial education. Most individuals are aware of their level of financial competence, and there is no cognitive dissonance because of overconfidence.Practical implicationsThe findings indicate the importance of financial education programs, which allows to mitigate poverty by increasing the level of financial literacy. The study shows the lack of mathematical skills limits individuals' ability to understand and apply more advanced financial concepts that are necessary for effective financial management. Therefore, the adoption of a comprehensive approach that combines financial education with the strengthening of transversal skills is necessary. It is important to strengthen supervisory systems to evaluate the objectives of financial education programs. The necessary financial literacy requires constant adaptation of both financial education programs and assessment tools.Social implicationsFinancial literacy improved between 2016 and 2021, a period in which national financial education programs were actively promoted, highlighting the potential of such initiatives as effective tools to enhance financial inclusion. However, to maximize their impact, these programs must be tailored to the specific needs of the most vulnerable segments of the population, particularly women, older adults and individuals with low income, who consistently show lower levels of financial literacy. Strengthening financial skills within these groups can contribute not only to greater personal financial autonomy but also to broader social equity, aligning with the Sustainable Development Goal of reducing inequalities.Originality/valueThis study goes beyond the analysis of financial literacy and aims to study the self-perception that the population has about their knowledge and the differences between population groups to understand which population groups are financially more vulnerable.
Purpose Companies are encouraged to proactively identify and address the sustainability issues most relevant to stakeholders and respond to their concerns and expectations. This paper aims to examine how materiality assessment and the interconnectedness of Sustainable Development Goals (SDGs) can help uncover misalignments between corporate sustainability priorities and stakeholder expectations. Design/methodology/approach The authors focus on Nestlé as a case study, analyzing its sustainability reports alongside stakeholder discussions on Twitter. Nestlé’s SDG-related disclosures were used to construct a materiality matrix, while stakeholder communications were manually coded. The authors then compared the constructed matrix with Nestlé’s own materiality matrix provided in its sustainability report. In addition, the authors conducted social network analysis to explore the interconnectedness of SDGs as portrayed in Nestlé’s sustainability report and reflected in stakeholder discussions on Twitter. Findings The study reveals misalignments between Nestlé’s sustainability report and stakeholders’ sustainability concerns expressed on social media. For example, while both Nestlé and stakeholders recognize the importance of SDG 12 Responsible Consumption and Production, stakeholders place greater emphasis on SDG 6 Clean Water and Sanitation than the company’s matrix suggests. Social network analysis of SDG interconnectedness further highlights distinct perspectives between Nestlé and its stakeholders, with SDG 12 emerging as a central theme. Practical implications When developing their methodologies for materiality assessment, companies should consider using various sources of information, including social media. Furthermore, interconnectedness analysis can help uncover misalignments between corporate and stakeholder priorities. Finally, materiality assessment may be more effective and credible when conducted independently from a third party. Social implications Achieving the SDGs requires coordination, collaboration, and effective reporting. Our findings suggest that misalignments between corporate materiality assessments and stakeholder priorities may weaken public trust and limit meaningful progress toward the SDGs. Incorporating stakeholder perspectives–particularly those expressed through social media–can support more inclusive sustainability governance, enhance transparency, and promote more coherent action across interconnected SDGs. Originality/value This study contributes new insights into the use of materiality assessment and SDG interconnectedness to reduce misalignments between corporate and stakeholder SDG priorities. It demonstrates the value of alternative data sources, particularly social media, in supporting materiality assessments and SDG interconnectedness analysis. Moreover, it illustrates how stakeholder discussions on social media and social network analysis can be used to examine the interconnections among SDGs as perceived by both companies and stakeholders.
PurposeThis study aims to investigate how nonhuman animals are discussed in corporate nonfinancial reports. Despite being affected in multiple ways by corporate actions, such animals have historically been marginalized in corporate disclosures.Design/methodology/approachUtilizing a framework based on two dimensions - the value assigned to nonhuman animals (ranging from intrinsic to instrumental) and the level of discussion (from systems to individuals) - the study examines the presence of various animal groups within the sustainability or annual reports of the largest Nordic companies across six business sectors.FindingsDiscussions about wild animals were largely framed within system-based and conservationist perspectives, blending intrinsic and instrumental values. Farmed animals were more often considered in terms of their species rather than as individuals, reflecting both middle-ground approaches between intrinsic and instrumental values and a strong emphasis on the latter.Practical implicationsThe study reveals significant variations in how companies address nonhuman animals and encourages the development of more comprehensive reporting standards, including a holistic approach to different animal groups and ethical considerations.Social implicationsThe findings support regulators, nongovernmental organizations and corporations in improving animal-related performance targets. The study also highlights opportunities for alignment with evolving European Union sustainability accounting standards and animal policies.Originality/valueThis study contributes to the emerging stream of research on animal representation in corporate reporting by: (i) offering an empirical snapshot of the state of the field and (ii) proposing a new, holistic framework that addresses gaps and complexities in existing approaches.
