Unlocking the Message: A Deep Dive into the Readability of Sustainability Reports on the JSE

Stakeholder theory posits that companies have responsibilities beyond shareholders, extending to a broader range of stakeholders. Companies often communicate their environmental, social, and governance (ESG) journey through sustainability reports (SRs). However, literature has suggested that these reports can be challenging to understand due to technical jargon and complex language, which can alienate stakeholders without financial or legal backgrounds. This study evaluates the readability of SRs by analysing SRs of the top 40 Johannesburg Stock Exchange (JSE) listed companies, using two metrics, the Flesch Reading Ease Score (FRE) and Flesch-Kincaid Grade Level (FKGL), over a 5-year period (2019–2023). Descriptive statistical methods were employed to provide insights into the readability of SRs for companies listed on the JSE; this was done in line with previous studies. The results show that most reports are not easily readable, falling into ‘difficult’ or ‘very difficult’ categories. They suggest that over three-quarters of the economically active South African population, who may form part of an entity’s broad stakeholders, may struggle to read SRs produced by JSE-listed companies since they do not possess the required educational level. Early trends suggest these reports prioritise regulatory compliance over accessibility, limiting their usefulness for a broader audience. By analysing current readability levels, the study provides insights for better stakeholder engagement and informed decision-making. It also emphasises the importance of clear communication in corporate reporting and offers recommendations for improving transparency and inclusivity.