Sustainable development goals disclosures: Evidence from Sri Lanka

Abstract

AbstractIn developing countries, the extent of SDG disclosures in annual reports remains largely unexplored despite the popularity of corporate commitments to the United Nations Sustainable Development Goals (SDGs). Hence, this study aims to assess the extent to which companies make SDG disclosures in Sri Lanka and identify the reasons affecting such disclosures. This study collected data by content analyzing the annual reports of 45 listed companies, followed by trend analysis and semi‐structured interviews. The results show that SDG 9 (Industry Innovation and Infrastructure) and SDG 17 (Partnerships for the Goals) are the most disclosed SDGs. Of these goals, the disclosure pattern related to SDG 17 is influenced by the collectivistic nature of the country's community. However, the average level of disclosure related to SDGs remains low, as they are often treated as add‐ons to existing sustainability strategies. Additionally, interviews revealed that companies have not actively adjusted their operations to integrate SDGs, suggesting that SDG disclosures primarily serve as a means to enhance their legitimacy.