THE GOOD, THE BAD AND THE EFFECTIVE ?? TRENDS IN SUSTAINABILITY REPORTING IN NEW ZEALAND LISTED COMPANIES

Abstract

This paper examines sustainability reporting trends of 50 NZX-listed companies, focusing on their effectiveness, transparency, and accountability. As sustainability reporting remains largely voluntary, unregulated, and inconsistent, this study investigates the current status quo in ESG/sustainability reporting in New Zealand. As a result, it provides managerial advice on what currently constitutes effective sustainability reporting. This paper of qualitative nature explores reporting practices across five key criteria: report type, adopted reporting frameworks, type of adopted governance within an organisation, type of adopted assurance and trends in social disclosures. The findings point to improvements in the quality of sustainability reporting in New Zealand, however, find that most organisations fall short of international standards. The study underscores the necessity for a balanced disclosure of material issues, suggesting the adoption of the GRI and integrated reporting frameworks need to deliver a comprehensive picture of a company's value creation. Additionally, it offers key recommendations for making sustainability reporting more meaningful. This includes disclosure of both positive and negative impacts, data sources, methodologies, and key assumptions used. Furthermore, it identifies the importance of stakeholder engagement to assess and address organisational material impacts, the necessity to adopt clear measurable sustainability goals, and the use of third-party verification for the enhanced reports� credibility.