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Harmonization of Sustainability Reporting Regulation: Analysis of a Contested Arena

Author

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  • Hammed Afolabi

    (Henley Business School, University of Reading, Reading RG6 6AH, UK)

  • Ronita Ram

    (Henley Business School, University of Reading, Reading RG6 6AH, UK)

  • Gunnar Rimmel

    (Henley Business School, University of Reading, Reading RG6 6AH, UK)

Abstract

This paper presents the case for the sustainability reporting field as a contested arena and examines the behavior and the influence of the various actors, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC), and the European Commission, including the European Financial Reporting Advisory Group (EFRAG) and the International Financial Reporting Standards (IFRS) Foundation in influencing the shape of the regulation in the arena. Drawing on the arena concept and documentary analysis, this study explores the dynamic in which each actor is attempting to change the rules within the arena and how this contributes to the harmonization and future direction of sustainability reporting. The findings of this study show that the actions and behavior of the various actors are premeditated and strategically calculated to maintain their influence, relevance, and defend their technical authority in the arena. The findings also suggest that sustainability reporting regulation is still far away from harmonization due to the perceived hegemony in the arena, and diversity in the overarching objective of the various actors and the inability of each actor to renounce its particular perspective and orientation. Insights are provided for policy makers on the urgent need to decide and reclassify the specific rules required in upholding the sustainability reporting arena.

Suggested Citation

  • Hammed Afolabi & Ronita Ram & Gunnar Rimmel, 2022. "Harmonization of Sustainability Reporting Regulation: Analysis of a Contested Arena," Sustainability, MDPI, vol. 14(9), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5517-:d:808500
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    2. Ion FRECAUTAN & Andreea NITA (DANILA), 2022. "Who Is Going To Win: The Eu Esg Regulation Or The Rest Of The World? €“ A Critical Review," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(2), pages 109-120, December.
    3. Tiziana De Cristofaro & Carmela Gulluscio, 2023. "In Search of Double Materiality in Non-Financial Reports: First Empirical Evidence," Sustainability, MDPI, vol. 15(2), pages 1-30, January.
    4. Oluyomi A. Osobajo & Adekunle Oke & Ama Lawani & Temitope S. Omotayo & Nkeiruka Ndubuka-McCallum & Lovelin Obi, 2022. "Providing a Roadmap for Future Research Agenda: A Bibliometric Literature Review of Sustainability Performance Reporting (SPR)," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    5. Wayne Moodaley & Arnesh Telukdarie, 2023. "Greenwashing, Sustainability Reporting, and Artificial Intelligence: A Systematic Literature Review," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    6. Marisa Camilher Camargo & Ryan Sarsfield & Markku Kanninen & Theresa Cashore, 2023. "The Role of Private Philanthropy in Sustainability Standards Harmonization: A Case Study," Sustainability, MDPI, vol. 15(13), pages 1-15, July.
    7. Riccardo Savio & Edoardo D’Andrassi & Francesca Ventimiglia, 2023. "A Systematic Literature Review on ESG during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(3), pages 1-17, January.

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