Status Quo of Voluntary Sustainability Reporting by German SMEs in 2021
Status Quo of Voluntary Sustainability Reporting by German SMEs in 2021

Author(s): Dominika P. Galkiewicz, Veronika Gaβner
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: SME; Sustainability; Reporting
Summary/Abstract: New regulations related to Environment, Social and Governance (ESG), such as the Non-Financial Reporting Directive (NFRD) or the upcoming Taxonomy Regulation of the European Union (EU), will have a significant impact on various market participants. To gain insight, a study was conducted comparing sustainability reporting patterns of the top ten voluntary small and medium-sized enterprises (SMEs) sustainability reports. The results showed that these companies do not follow a uniform approach to sustainability reporting. Though the evaluated topics were the same, their contents and level of detail differed. It was also observed that some of the examined companies selected key performance indicators (KPIs) according to their preference and explained them in detail. Moreover, the companies issued different types of sustainability reports, such as separate PDF reports, online versions, or a combination of both. The companies provided extensive information on environmental issues, especially on GHG emissions, concrete measures, and targets for reducing emissions and energy consumption. Many presented this information in detail with status and KPIs linked to their sustainability program based on their previously identified material issues. However, the topics of pollution, water and marine resources, biodiversity, and ecosystems were only marginally addressed in the examined sustainability reports. Regarding social information, the investigated companies disclosed a broad spectrum of information on their own workforce, especially on working conditions, equal treatment, and opportunities. On the other hand, the reporting of the examined companies varied widely for governance. Many firms reported on mandatory topics such as corruption, bribery, and political engagement. These findings are useful for policymakers, other companies including banks and suppliers, and individuals interested in assessing sustainability status and progress.

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