Evaluating CSR Reporting Credibility: Evidence from Athex ESG Index Companies

Purpose: Our research aims to access the credibility of CSR and sustainability reporting among the ATHEX ESG companies in the context of the upcoming changes expected in the EU due to the CSRD. Design/Methodology/Approach: Our research methodology is grounded on the content analysis of secondary data from the ATHEX ESG companies’ sustainability reports. Findings: We found that 40% of the ATHEX ESG companies received external assurance for their sustainability disclosures. GRI was the most commonly adopted framework (71.7% reported “in accordance with” the GRI standards) with 36.7% of companies receiving external assurance for reporting “in accordance with” the GRI. On the other end of the spectrum 11.7% of companies demonstrated limited credibility as they relied solely on the ATHEX ESG guidelines, without following any international standard. Practical implications: The findings reveal the need for more streamlined standards in sustainability reporting as well as assurance practices both the Greek and European context. While the majority of the companies surveyed follow at least one international framework for reporting (GRI, SASB, UNGC), there is a significant gap to reach full compliance with the upcoming CSRD requirements, especially in terms of assurance. These insights can aid policymakers, regulators and practitioners wishing to support the transition to harmonized and reliable sustainability reporting standards within the EU. Originality/Value: Our research contributes empirical evidence to the limited literature on the communication of credibility in sustainability reporting, within the under-researched context of Greece. The use of a content analysis research methodology is replicable and offers a benchmark of the current sustainability reporting credibility enhancing practices among listed companies prior to the implementation of the CSRD, enabling future comparative studies across Europe.