Beyond water scarcity and efficiency? Water sustainability disclosures in corporate reporting

Purpose - This research aims to understand how companies communicate their understanding of water-related challenges and their responses to identify new pathways for addressing this challenge to further advance rising interest in water sustainability strategies of corporations. Design/methodology/approach - Through a content analysis of corporate disclosures, this paper identifies the actions and challenges reported by 35 FTSE 100 companies. These are analyzed quantitatively and qualitatively to explore variations in the subject of disclosure and the narrative framing. Findings - The findings identify a clear split across the types of water sustainability reporting according to the industrial sector and subject of disclosure, linking to different narratives used according to legitimacy pressures. Practical implications - This paper finds that energy, materials and consumer staples sectors consistently outperform other sectors on the reporting of water issues and the scope which is covered. This has implications for the design of regulations and incentives to increase water sustainability management activities in large companies, which currently under-report. Social implications - This paper highlights the need for policy implementation to further integrate water-related topics into company reporting and identifies situations where the narrative disclosed may distort the underlying situation that is being communicated. Originality/value - This paper explores the narratives used in company reporting to identify the challenges related to water sustainability and the actions taken in response. This can contribute to developing a pathway towards increased water sustainability (e.g. through new policy design).