Skip to main content
SpringerLink
Log in
Book cover

Non-financial Disclosure and Integrated Reporting pp 61–84Cite as

Implementing SDGs and Mandatory Non-financial Reporting in Corporate Practices: Insight from an Italian Global Player

Part of the SIDREA Series in Accounting and Business Administration book series (SSABA)

Abstract

Purpose—This book chapter explores how the adoption of the Sustainable Development Goal (SDG)s and the introduction of the 2014/95/EU Directive (EU Directive) is likely to inspire organisational changes in the context of Sustainability Report preparers.

Design/methodology/approach—A case study is performed on Enel, one of the world’s leading integrated electricity and gas operators. The case study is based on in-depth interviews with key decision-makers—who played a crucial role in preparing the Sustainability Reports and adopting the EU Directive—and document analysis on non-financial reports.

Findings—Findings show that from 2015, Enel has revolutionised its growth model, placing relevant SDGs at the core of the value chain process. In addition, our findings pinpoint that the introduction of the EU Directive has strengthened the culture of non-financial information within the organisation, encouraging greater awareness and high-value global engagement.

Originality/value/contribution—This research contributes to the academic debate in two ways. Firstly, it adds value to the current academic debate on how the SDGs are being integrated into corporate strategies and practices in the context of Sustainability Report preparers. Secondly, it provides insight for practitioners and regulators about the EU Directive’s material changes produced on corporate governance and internal control mechanisms.

Keywords

  • Non-financial reporting
  • Sustainable Development Goals (SDGs)
  • Corporate Governance
  • Directive 2014/95/EU

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   179.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Bebbington, J. & Unerman, J. (2018). Achieving the United Nations sustainable development goals. Accounting, Auditing and Accountability Journal, 31(1), 2–24.

    Google Scholar 

  • Biondi, L., Dumay, J., & Monciardini, D. (2020). Using the international integrated reporting framework to comply with EU directive 2014/95/EU: Can we afford another reporting façade? Meditari Accountancy Research, 28(5), 889–914.

    CrossRef  Google Scholar 

  • Bolino, M. C., et al. (2008). A multi-level review of impression management motives and Behaviors. Journal of Management, 34(6), 1080–1109.

    CrossRef  Google Scholar 

  • Brennan, N. M., & Merkl-Davies, D. M. (2015). Accounting narratives and impression management. In L. Jack, J. Davison, & R. Craig (Eds.), The Routledge companion to accounting communication. Routledge.

    Google Scholar 

  • Brotherton, B. (2008). Researching hospitality and tourism. SAGE Publications.

    CrossRef  Google Scholar 

  • Buhr, N., Gray, R., & Milne, M. J. (2014). Histories, rationales, voluntary standards and future prospects for sustainability reporting. In Sustainability accounting and accountability (2nd ed., pp. 51–71).

    Google Scholar 

  • Camilleri, M. A. (2015). “Environmental, social and governance disclosures in Europe”, sustainability accounting. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242.

    CrossRef  Google Scholar 

  • Carungu, J., Di Pietra, R. and Molinari, M. (2020), “Mandatory vs voluntary exercise on non-financial reporting: does a normative/coercive isomorphism facilitate an increase in quality?”, Meditari Accountancy Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MEDAR-08-2019-0540

  • Chartered Global Management Accountant (CGMA). (2018). Creating a sustainable future: The role of the accountant in implementing the sustainable development goals. https://www.cgma.org/content/dam/cgma/resources/reports/downloadabledocuments/cgma-sustainabledvelopment-goals-guide-apr-18.pdf

  • Chevrollier, N., Zhang, J., van Leeuwen, T., & Nijhof, A. (2020). The predictive value of strategic orientation for ESG performance over time. Corporate Governance (Bingley), 20(1), 123–142.

    CrossRef  Google Scholar 

  • Clarke, T. (2004). Theories of corporate governance: The philosophical foundations of corporate governance. Routledge.

    Google Scholar 

  • Clarkson, P. M., et al. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organisations and Society, 33(4–5), 303–327.

    CrossRef  Google Scholar 

  • Covaleski, M. A., et al. (2003). Budgeting research: Three theoretical perspectives and criteria for selective integration. Journal of Management Accounting Research, 15, 3–49.

    CrossRef  Google Scholar 

  • Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47.

    CrossRef  Google Scholar 

  • Daymon, C., & Holloway, I. (2010). Qualitative research methods in public relations and marketing communications. Routledge.

    CrossRef  Google Scholar 

  • de Villiers, C., & Hsiao, P. K. (2018). Why organisations voluntarily report – Agency theory. In C. de Villiers & W. Maroun (Eds.), Sustainability accounting and integrated reporting (pp. 49–56). Routledge.

    Google Scholar 

  • Deegan, C., & Gordon, B. (1996). A study of the environmental disclosure practices of Australian corporations. Accounting and Business Research, 26(3), 187–199.

    CrossRef  Google Scholar 

  • Deegan, C., & Rankin, M. (1996). Do Australian companies report environmental news objectively? An analysis of environmental disclosures by firms prosecuted successfully by the environmental protection authority. Accounting, Auditing & Accountability Journal, 9, 50–67.

    CrossRef  Google Scholar 

  • Di Vaio, A., Palladino, R., Hassan, R., & Escobar, O. (2020). Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review. Journal of Business Research, 121, 283–314.

    CrossRef  Google Scholar 

  • Doni, F., Bianchi Martini, S., Corvino, A., & Mazzoni, M. (2019). Voluntary versus mandatory non-financial disclosure: EU directive 95/2014 and sustainability reporting practices based on empirical evidence from Italy. Meditari Accountancy Research, 28(5), 781–802.

    CrossRef  Google Scholar 

  • Dumay, J., La Torre, M., & Farneti, F. (2019). Developing trust through stewardship: Implications for intellectual capital, integrated reporting, and the EU directive 2014/95/EU. Journal of Intellectual Capital, 20(1), 11–39.

    CrossRef  Google Scholar 

  • Dye, R. A. (1985). Disclosure of nonproprietary information. Journal of Accounting Research, 23(1), 123–145.

    CrossRef  Google Scholar 

  • Enel. (2020). Sustainability report. Retrieved November 30, 2020, from https://sustainabilityreport2019.enel.com/sites/enelcsr19/files/enel_sustainability_report_2019_eng.pdf#page=10

  • EU. (2002). Corporate social responsibility: a business contribution to sustainable development. COM(2002) 347 final, Commission of the European Communities, Brussels.

    Google Scholar 

  • EU. (2014), European Directive 2014/95 disclosure of non-financial and diversity information by certain large undertakings and groups. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095

  • EU Commission. (2020a). Summary report of the public consultation on the review of the non-financial reporting directive. (Ref. Ares (2020) 3997889—29/07/2020). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri5pi_com%3AAres%282020%293997889

  • EU Commission. (2020b). Inception impact assessment ‘sustainable corporate governance. (Ref. Ares (2020) 4034032—30/07/2020). https://ec.europa.eu/info/law/betterregulation/have-yoursay/initiatives/12548-Sustainable-corporate-governance

  • Fonseca, L., & Carvalho, F. (2019). The reporting of SDGs by quality, environmental, and occupational health and safety-certified organisations. Sustainability, 11(20), 5797.

    CrossRef  Google Scholar 

  • Friedman, M. (1962). Capitalism and freedom. The University of Chicago Press.

    Google Scholar 

  • García-Sánchez, I. M., Aibar-Guzmán, B., Aibar-Guzmán, C., & Rodríguez-Ariza, L. (2020). Sell recommendations by analysts in response to business communication strategies concerning the Sustainable Development Goals and the SDG compass. Journal of Cleaner Production, 255, 120194.

    CrossRef  Google Scholar 

  • Global Reporting Initiative. (2017). Member State Implementation of Directive 2014/95/EU. A comprehensive overview of how member states are implementing the EU directive on nonfinancial and diversity information. GRI. https://www.accountancyeurope.eu/wpcontent/uploads/1711-NFRpublication-GRI-SREurope.pdf

  • Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47–77.

    CrossRef  Google Scholar 

  • Gurd, B. (2008). Structuration and middle-range theory – A case study of accounting during organizational change from different theoretical perspectives. Critical Perspectives on Accounting, 19(4), 523–543.

    CrossRef  Google Scholar 

  • Guthrie, J., Manes Rossi, F., Orelli, R. L., & Nicolò, G. (2020). Investigating risk disclosures in Italian integrated reports. Meditari Accountancy Research, 28(6), 1149–1178.

    CrossRef  Google Scholar 

  • Guthrie, J. E., & Parker, L. D. (1989). Corporate social reporting: A rebuttal of legitimacy theory. Accounting and Business Research, 9(76), 343–352.

    CrossRef  Google Scholar 

  • Guthrie, J. E., & Parker, L. D. (1990). Corporate social disclosure practice: A comparative international analysis. Advances in Public Interest Accounting, 3, 159–176.

    Google Scholar 

  • Hackstone, D., & Milne, M. J. (1996). Some determinants of social and environmental disclosures in New Zealand companies. Auditing, Accounting & Accountability Journal, 9(1), 77–108.

    CrossRef  Google Scholar 

  • Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5–21.

    CrossRef  Google Scholar 

  • Hambrick, D. C., Werder, A., & Zajac, E. J. (2008). New directions in corporate governance research. Organization Science, 19(3), 381–385.

    CrossRef  Google Scholar 

  • Hoque, Z., Covaleski, M. A., & Gooneratne, T. N. (2013). Theoretical triangulation and pluralism in research methods in organisational and accounting research. Accounting, Auditing and Accountability Journal, 26(7), 1170–1198.

    CrossRef  Google Scholar 

  • IIRC. (2013). The international <IR> framework. http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf

  • Ioannou, I., & Serafeim, G. (2017). The consequences of mandatory corporate sustainability reporting (Harvard Business School research working paper) (pp. 11–100). Harvard Business School.

    Google Scholar 

  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.

    CrossRef  Google Scholar 

  • KPMG. (2017). The road ahead – The KPMG Survey of Corporate Responsibility Reporting 2017. https://home.kpmg.com/xx/en/home/campaigns/2017/10/survey-of-corporate-responsibility-reporting-2017.html

  • Krippendorff, K. (1980). Content analysis. An introduction to its methodology. SAGE.

    Google Scholar 

  • Krippendorff, K. (1989). On the essential contexts of artifacts or on the proposition that “design is making sense (of things)”. Design Issues, 5(2), 9–39.

    CrossRef  Google Scholar 

  • Krippendorff, K. (2004). Reliability in content analysis. Human Communication Research, 30(3), 411–433.

    Google Scholar 

  • La Torre, M., Sabelfeld, S., Blomkvist, M., Tarquinio, L., & Dumay, J. (2018). Harmonising non-financial reporting regulation in Europe: Practical forces and projections for future research. Meditari Accountancy Research, 26(4), 598–621.

    CrossRef  Google Scholar 

  • Laughlin, R. (1995). Methodological themes: Empirical research in accounting: Alternative approaches and a case for “middle-range” thinking. Accounting, Auditing & Accountability Journal, 8(1), 63–87.

    CrossRef  Google Scholar 

  • Lodhia, S. (2015). Exploring the transition to integrated reporting through a practice lens: An Australian customer owned bank perspective. Journal of Business Ethics, 129(3), 585–598.

    CrossRef  Google Scholar 

  • Manes-Rossi, F., Tiron-Tudor, A., Nicolò, G., & Zanellato, G. (2018). Ensuring more sustainable reporting in Europe using non financial disclosure – De facto and De jure evidence. Sustainability, 10. pp. 1162, pp. 1–20.

    Google Scholar 

  • Manes-Rossi, F., Nicolò, G., Tiron Tudor, A., & Zanellato, G. (2020). Drivers of integrated reporting by state-owned enterprises in Europe: a longitudinal analysis. Meditari Accountancy Research, Vol. ahead-of-print No. ahead-of-print.

    Google Scholar 

  • Merkl-Davies, D. M., & Brennan, N. M. (2007). Discretionary disclosure strategies in corporate narratives: Incremental information or impression management? Journal of Accounting Literature, 26, 116–196.

    Google Scholar 

  • Milne, M. J., & Gray, R. (2007). Future prospects for corporate sustainability reporting. Sustainability accounting and accountability, 1, 184–207.

    Google Scholar 

  • Milne, M. J., & Gray, R. (2013). W(h)ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of Business Ethics, 118(1), 13–29.

    CrossRef  Google Scholar 

  • Mio, C., & Fasan, M. (2013). The case of Enel. In Integrated reporting (pp. 225–236). Springer.

    CrossRef  Google Scholar 

  • Molinari, M., & Carungu, J. (2019). Rendicontazione non finanziaria: dalla forma alla sostanza. Controllo di Gestione, 6, 5–17.

    Google Scholar 

  • Naciti, V., Cesaroni, F., & Pulejo, L. (2021). Corporate governance and sustainability: A review of the existing literature. Journal of Management and Governance.

    Google Scholar 

  • Nicolò, G., Zanellato, G., Manes-Rossi, F., & Tiron-Tudor, A. (2020a). Corporate reporting metamorphosis: Empirical findings from state-owned enterprises. Public Money & Management, 1–10.

    Google Scholar 

  • Nicolò, G., Zanellato, G., & Tiron-Tudor, A. (2020b). Integrated reporting and European state-owned enterprises: A disclosure analysis pre and post 2014/95/EU. Sustainability, 12(5), 1908.

    Google Scholar 

  • OECD. (2004). The revised OECD principles of corporate governance and their relevance to non-OECD countries.

    Google Scholar 

  • OXFAM. Mhlanga R., Gneiting U., & Agarwal N. (2018). Walking the Talk: Assessing Companies’ Progress from SDG Rhetoric to Action. Oxford, UK. https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620550/dpwalking-the-talk-business-sdgs-240918-en.pdf

  • Patten, D. M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory. Accounting, Organisations and Society, 17(5), 471–475.

    CrossRef  Google Scholar 

  • Pickering, M. J. (2006). Qualitative content analysis, The Sage Encyclopedia of Social Science Research Methods. Sage. http://www.sage ereference.com/socialscience/Article_n779.html

    Google Scholar 

  • Prado-Lorenzo, J. M., & Garcia-Sanchez, I. M. (2010). The role of the board of directors in disseminating relevant information on greenhouse gases. Journal of Business Ethics, 97(3), 391–424.

    CrossRef  Google Scholar 

  • Rubino, F., & Napoli, F. (2020). What impact does corporate governance have on corporate environmental performances? An empirical study of Italian listed firms. Sustainability (Switzerland), 12(14), 1–21.

    Google Scholar 

  • Scheyvens, R., Banks, G., & Hughes, E. (2016). The private sector and the SDGs: The need to move beyond ‘business as usual’. Sustainable Development, 24(6), 371–382.

    CrossRef  Google Scholar 

  • Scott, L., & McGill, A. (2018). From promise to reality: Does business really care about the SDGs? And what needs to happen to turn words into action. Price Waterhouse Coopers.

    Google Scholar 

  • Seidman, I. (2013). Interviewing as qualitative research: A guide for researchers in education and the social sciences (3rd ed.). Teachers College Press.

    Google Scholar 

  • Smith, S. S. (2019). Integrated reporting management: Analysis and applications for creating value. Routledge.

    Google Scholar 

  • The Institute of Directors in Southern Africa. (2016). King IV Report on Corporate Governance for South Africa 2016, The Institute of Directors in Southern Africa 2016. https://www.iodsa.co.za

  • Turnbull, S. (1997). Corporate governance: Its scope, concerns and theories. Corporate Governance, 5(4), 415–440.

    Google Scholar 

  • UNEP, K. and KPMG, U. (2010). Carrots and Sticks: Promoting Transparency and Sustainability–an update on trends in Voluntary and Mandatory Approaches to Sustainability Reporting.

    Google Scholar 

  • United Nations General Assembly. (2015). Transforming our world: The 2030 agenda for sustainable development. www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E

  • Velte, P., & Gerwanski, J. (2020). The impact of governance on integrated reporting. In C. de Villiers, P. K. Hsiao, & W. Maroun (Eds.), The Routledge handbook of integrated reporting (pp. 210–226). Routledge.

    CrossRef  Google Scholar 

  • Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5, 179–194.

    CrossRef  Google Scholar 

  • Wachira, M. M., Berndt, T., & Romero, C. M. (2019). The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: Lessons from South Africa. Social Responsibility Journal, 16(5), 613–629.

    CrossRef  Google Scholar 

  • Wang, R., Zhou, S., & Wang, T. (2019). Corporate governance, integrated reporting and the use of credibility-enhancing mechanisms on integrated reports. European Accounting Review, 29(4), 631–663.

    CrossRef  Google Scholar 

  • Yin, R. K. (1989). Case study research: Design and methods (2nd ed.). Sage Publications.

    Google Scholar 

  • Yin, R. K. (2003). Case study research: Design and methods. Sage.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Guildhall School of Business and Law, London Metropolitan University, London, UK

    Jonida Carungu

  2. Kent Business School, University of Kent, Kent, UK

    Matteo Molinari

  3. Department of Business Studies – Management and Innovation Systems, University of Salerno, Salerno, Italy

    Giuseppe Nicolò

  4. Institute of Management, Sant’Anna School of Advanced Studies, Pisa, Italy

    Giacomo Pigatto

  5. Department of Economics and Business Management Sciences, Università Cattolica del Sacro Cuore, Milan, Italy

    Claudio Sottoriva

Authors
  1. Jonida Carungu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Matteo Molinari
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Giuseppe Nicolò
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Giacomo Pigatto
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Claudio Sottoriva
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Giuseppe Nicolò .

Editor information

Editors and Affiliations

  1. Institute of Management, Sant’Anna School of Advanced Studies, Pisa, Italy

    Lino Cinquini

  2. Department of Management and Business Administration, “G. d’Annunzio” University of Chieti-Pescara, Pescara, Italy

    Francesco De Luca

Rights and permissions

Reprints and Permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Carungu, J., Molinari, M., Nicolò, G., Pigatto, G., Sottoriva, C. (2022). Implementing SDGs and Mandatory Non-financial Reporting in Corporate Practices: Insight from an Italian Global Player. In: Cinquini, L., De Luca, F. (eds) Non-financial Disclosure and Integrated Reporting. SIDREA Series in Accounting and Business Administration. Springer, Cham. https://doi.org/10.1007/978-3-030-90355-8_3

Download citation

search

Navigation