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

Jaroslav Sedlák () and Jaromír Veber ()
Additional contact information
Jaroslav Sedlák: Pan-European University, Czech Republic
Jaromír Veber: University of Chemistry and Technology, Prague, Czech Republic

Entrepreneurship and Sustainability Issues, 2024, vol. 12, issue 2, 193-209

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.

Keywords: Corporate Sustainability Reporting Directive (CSRD); disclosure; non-financial information; non-financial reporting; quality (search for similar items in EconPapers)
JEL-codes: K30 M48 Q48 Q56 Q58 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jssidoi.org/jesi/uploads/articles/46/Sedla ... g_Directive_CSRD.pdf (application/pdf)
https://jssidoi.org/jesi/article/1255 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:12:y:2024:i:2:p:193-209

DOI: 10.9770/c5723389853

Access Statistics for this article

Entrepreneurship and Sustainability Issues is currently edited by Manuela Tvaronaviciene

More articles in Entrepreneurship and Sustainability Issues from VsI Entrepreneurship and Sustainability Center
Bibliographic data for series maintained by Manuela Tvaronaviciene ().