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Quality of non-financial information in the context of Corporate Sustainability Reporting Directive (CSRD)

Author

Listed:
  • Jaroslav Sedlák

    (Pan-European University, Czech Republic)

  • Jaromír Veber

    (University of Chemistry and Technology, Prague, Czech Republic)

Abstract

Recent developments in the EU regulatory framework, from the 2014 Non-Financial Reporting Directive (NFRD) to the 2021 Corporate Sustainability Reporting Directive (CSRD), have significantly increased ESG disclosure requirements for a more significant number of companies. Despite numerous studies on non-financial information, few specifically address the CSRD. This paper contributes to bridging this research gap. This paper aims to evaluate the quality of non-financial information (NFI) disclosed by companies subject to the CSRD from 2025, compare it to CSRD standards, and explore any correlation with company size. To achieve this aim, data on non-financial information (NFI) from 53 companies in a selected EU country was collected from annual reports and other sources, converted to quantitative indicators, and assessed to create Non-Financial Information Indexes (NFIIs). Using descriptive statistics, the construction of Company Size Indexes (CSI) and the application of Pearson's correlation coefficient, it was found that NFI quality does not meet CSRD standards and is positively, but not statistically significantly correlated with company size. The practical importance of this document is to provide feedback to companies on their non-financial reporting concerning CSRD standards and inform policymakers on this issue. The theoretical contribution lies in proposing a method for evaluating the published quality of NFIs based on the CSRD criteria and providing new insight into the correlation between NFI quality and company size.

Suggested Citation

  • Jaroslav Sedlák & Jaromír Veber, 2024. "Quality of non-financial information in the context of Corporate Sustainability Reporting Directive (CSRD)," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 12(2), pages 193-209, December.
    • Handle: RePEc:ssi:jouesi:v:12:y:2024:i:2:p:193-209
    DOI: 10.9770/c5723389853
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    More about this item

    Keywords

    Corporate Sustainability Reporting Directive (CSRD); disclosure; non-financial information; non-financial reporting; quality;
    All these keywords.

    JEL classification:

    • K30 - Law and Economics - - Other Substantive Areas of Law - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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