Sustainability reporting: external motivators and internal facilitators

Purpose – The purpose of this study is to investigate the role of internal variables, such as strategic governance and operational controls, along with external variables that influence sustainability reporting. Design/methodology/approach – Building on the corporate governance and sustainability reporting literature, the authors develop a model to integrate external motivators and internal facilitators to determine their impact on sustainability reporting. The authors also control for a number of financial and non-financial variables that may influence sustainability reporting. The authors limit their sample to the companies in extractive industries that report their greenhouse gas emission to the Government of Canada. The authors collected the data from several data sources including secondary archival databases, newspapers, Web sites and annual reports. Findings – Using a sample of companies in high-polluting industries, the authors found that variables representing both external pressures that act as motivators and internal controls that act as facilitators are significantly associated with enhanced sustainability reporting. Practical implications – Considering the formation of several international initiatives such as International Integrated Reporting Council to improve sustainability reporting for decision-making, the authors’ research provides interesting insights both to policymakers and managers about organizational characteristics that are important to make reporting useful and relevant. Originality/value – Little academic research has investigated the role of internal variables in facilitating sustainability reporting. The authors use a robust model that combines external and internal variables to more thoroughly understand the reporting process.