Sustainability Reporting in the Electric Power Sector in Bulgaria: Assessment of Industry Transformation

Sustainability reporting is a growing trend, driven by increasing environmental concerns, social change and public interest. It has emerged as a key tool for corporate transparency and accountability, particularly in high-impact industries such as electricity. Companies in the electricity sector face heightened expectations to disclose their sustainability performance due to their significant environmental footprint and strategic importance. The electricity sector has an important role to play in achieving the Sustainable Development Goals and the EU commitment to become CO2 neutral by 2050, This study examines reporting practices, focusing on the electricity sector’s commitment to sustainability and its alignment with the Sustainable Development Goals (SDGs). Using a mixed-methods approach, it identifies key areas of focus in sustainability reporting and challenges in the sector among Bulgarian companies. The findings indicate that sustainability reporting in the Bulgarian electricity sector is evolving, with companies increasingly aligning their disclosures with sustainability reporting regulations. Sustainability disclosures predominantly emphasise environmental sustainability, in line with carbon emission reduction, energy efficiency and renewable energy integration, as well as social issues related to employees. It was found that the key drivers of sustainability reporting include regulatory requirements, investor expectations and corporate social responsibility commitments, while challenges stem from data collection difficulties and lack of expertise. This research contributes to the literature by providing an in-depth assessment of sustainability reporting in the Bulgarian electricity sector. It fills a research gap and offers insights that improve our understanding of the dynamics of sustainability reporting in Bulgaria. In conclusion, while progress is evident, continuous improvement in sustainability reporting remains essential for the electricity sector’s transition to a more responsible and environmentally conscious future.