Sustainability Reporting: A Comparative Study of Standardisation vs. Voluntary Disclosures Across Industries in China
DOI:
https://doi.org/10.53797/ujssh.v3i2.38.2024Keywords:
Sustainability reporting, mandatory reporting, voluntary reporting, corporate transparency, China industriesAbstract
This study examines the sustainability reporting practices across four major industries in China: Energy, Manufacturing, Technology, and Financial Services, focusing on comparing standardized (mandatory) and voluntary reporting frameworks. The research highlights significant industry-specific differences influenced by regulatory environments and market pressures by analyzing the extent to which companies in these sectors adopt sustainability reporting and their perceived effectiveness. The Energy and Manufacturing sectors strongly prefer mandatory reporting due to government regulations addressing environmental and social impacts, with 85% and 80% of companies adhering to compulsory sustainability frameworks. Conversely, the Technology and Financial Services sectors predominantly engage in voluntary reporting, with 75% and 70% of companies in these industries choosing to report on sustainability efforts without government mandates. The findings suggest that industries with higher environmental impacts are more likely to adopt standardized reporting frameworks, while those with lower immediate impacts benefit from the flexibility of voluntary disclosures. The study further emphasizes the need for sector-specific reporting standards that balance regulatory requirements and voluntary initiatives to promote greater transparency and accountability in sustainability practices. Future research could explore the effectiveness of different reporting frameworks in achieving corporate sustainability outcomes and the challenges companies face in adopting and implementing these practices.
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