Key aspects of sustainability reporting quality and the future of GRI

Abstract

Purpose: This paper aims to investigate the current state of knowledge in key reporting aspects in relation to sustainability reporting in general and to reflect on their relevance to Global Reporting Initiative (GRI) in particular. In doing so, the major gaps in that knowledge are identified, and the paper proceeds to suggest further research avenues. Design/methodology/approach: The authors conduct a review of papers published in leading journals concerning sustainability reporting to analyse the progress in the literature regarding three important reporting topics: materiality, comparability and assurance. Findings:The review conducted in this study shows that there is still work to be done to ensure high-quality and consistent sustainability reporting. Key takeaways from the review of the extant literature are as follows: there is ongoing debate about the nature of sustainability reporting materiality, and single versus double materiality. Clearer guidance and better contextualisation are seen as essential for comparability, and, as GRI suggests, there is an important link to materiality that needs to be considered. Finally, assurance has not been mandatory under the GRI, but the current development at EU level might lead to the GRI principles being incorporated in the primary assurance standards. Practical implications: In this paper, the authors review and synthesise the previous literature on GRI reporting dealing with three key reporting aspects. Social implications:The authors extract some takeaways from the literature on materiality, comparability and assurance that will all be key challenges for GRI in the future. Originality/value: This paper provides an updated review of the literature on GRI reporting dealing with three key reporting aspects.