Sustainability reporting for boosting national commitment and overcoming challenges: A hierarchical model

Abstract

AbstractSustainability reporting (SR) has emerged as a critical mechanism for organizations and nations to communicate their performance in terms of environmental, social, and governance (ESG). The present study investigates the challenges that prevent SR from being useful for system transparency and accountability. It identifies formidable barriers such as intentions, knowledge gaps, resource constraints, and the intricate nature of measurement metrics which necessitating a global collaborative efforts to improve SR's adaptability and acceptance within diverse systems. In addition, this pioneering research examines the factors that influence SR adoption and commitment at the national level. In the study, total interpretive structural modelling (TISM) is used to investigate the hierarchical relationship between factors while MICMAC analysis is administered to identify driver‐dependent connections. It reveals a multi‐layered structure in which macroeconomic factors such as political stability and resource availability drive regulatory effectiveness, operational factors such as administrative efficiency and awareness synergise for progress, and performance factors provide comprehensive insights into SR maturity at national level. The findings contribute significantly to the refinement of theoretical frameworks while emphasizing the importance of SR in advancing the 2030 Agenda for Sustainable Development. It emphasizes on political will, resource allocation, and tailored regulatory frameworks for comprehensive reporting of sustainability. This study provides practical insights for managers, policymakers, and businesses navigating sustainability reporting. It identifies drivers of national SR commitment and guides corporate practices towards sustainable development goals. Understanding these issues strengthens risk management and governance, while advanced measurement tools facilitate assessment and communication. Overall, it empowers stakeholders to elevate their engagement in enhancing sustainability practices, refining governance structures, and informing policy formulation.