Towards an outcome-based approach in ESG reporting: sustainability drive of Tata Steel

Swarup Kumar Dutta

IIM Ranchi Journal of Management Studies, 2025, vol. 4, issue 2, 107-126

Abstract: PurposeEnvironmental, social and governance (ESG) issues have gained unprecedented prominence in the corporate world, underscoring the imperative for businesses to address sustainability and ethical practices. Though the quality of reporting and performance measures being used have significantly improved, we are far from achieving an outcome-based approach for ESG reporting. This article focuses on the steel industry in India with Tata Steel as a classic test case for reporting ESG performances, wherein the ESG performance of Tata Steel have been analysed with an outcome-based approach to demonstrate that the company is truly on a sustainable development path.Design/methodology/approachWe use qualitative content analysis to map the data available in various annual reports of the company (Tata Steel) as also the sustainability reports for the period 2021–2023. Based on discussions with Tata Steel company officials, a content analysis was used to map all initiatives under ESG parameters for the period 2021–2023. Based on inductive reasoning, a comprehensive ESG information quality framework was used to examine the mapped parameters and report for ESG quality and performance, which was further corroborated with findings of Sustainalytics and Morgan Stanley Capital International (MSCI).FindingsImprovement in reporting performance: As can be observed, the position, development and performance scores of Tata Steel in ESG dimensions shows a remarkable achievement for a company in the steel industry. It would be comparable to some of the best companies on matters of ESG reporting and performances. The findings can be corroborated with the general findings of Sustainalytics and MSCI ESG ratings.Originality/valueThe paper is original, and the uniqueness of the paper can be gauged from the fact that it is perhaps one of the few papers to actually measure ESG issues with an outcome-based approach based on real-time sustainability reports of companies and through quality measurement systems to demonstrate that a company is truly on a sustainable path.

Keywords: ESG; Performance outcomes; Sustainable development; Tata Steel; Steel industry (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:irjmsp:irjms-08-2024-0080

DOI: 10.1108/IRJMS-08-2024-0080

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