A framework for sustainability reporting

Abstract

Purpose A sustainability reporting framework must demonstrate that resources are fairly bought and used to support diverse life on earth within habitable ranges. The purpose of this paper is to propose a principle-based sustainability reporting framework that measures, audits and reports based on sustainability outcomes and impacts as part of the corporate reporting framework. Design/methodology/approach This paper draws on the United Nations Sustainable Development Goals (UN SDGs) and targets for preparing a reporting framework. It uses Gaia Theory and the Theory of Distributive Justice constructs that align with sustainable development principles to delineate a reporting approach. Findings Frameworks that promote sustainability reporting have increasingly embraced UN SDGs but overly focus on performance promoting inter-firm comparisons. This framework introduces principle-based sustainability reporting where firms demonstrate their chosen contribution to sustainable development using 17 UN SDGs as goal posts. Research limitations/implications This conceptual paper presents theoretical constructs that future research can empirically validate to enhance sustainability reporting. Practical implications This principle-based sustainability reporting framework is implementable for corporate reporting, where sustainability reporting integrates with the financial and economic intellectual capital reporting frameworks. Social implications This framework highlights the importance of acquiring and using resources to distribute justice and fairness. It is a joint project between firms and stakeholders. Originality/value This framework promotes integrated thinking for firms to engage in principle-based sustainability reporting and provides a roadmap for sustainability reporting using the SDG Compass logic model.