Impact of Sustainability Reporting on Corporate Performance– A Systematic Literature Review

Abstract

Holistic corporate performance reporting which includes a firm’s financial, environmental and social performance has been the mandate, especially for large size listed companies’ world over. ESG reporting (Environmental, social and governance) framework from GRI (Global reporting initiatives) is the pioneer in this regard, and it has a comprehensive framework for showcasing the performance of a firm on all three said parameters. Numerous all-inclusive reporting frameworks are available in different countries and firms are expected adopt reporting framework that fulfils the regulatory and compliance requirements. Sustainability reporting is an important element in corporate performance reporting and draws attention from all the stakeholders. Understanding and investigating the relationship between sustainability reporting and firm’s financial performance has been a significant focus of academic research. Research patterns adopted in such studies include different dimensions and brings out interesting and substantial observations, yet findings are inconclusive. This study undertakes a comprehensive and systematic review of existing literature on sustainability reporting and its impact on corporate performance to understand the various dimensions of current body of knowledge. Researchers highlight important insights of the study and identify notable research gaps which will pave the way for future research.