Managers' View Towards Sustainability Reporting: Evidence From Iceland

This study investigates the response of Icelandic firms to mandatory sustainability reporting laws, focusing on the synergy between legal mandates, corporate governance, and external pressures. Employing a qualitative approach through semi-structured interviews, the findings reveal that while legislation has brought sustainability to the forefront, stakeholder pressure is the key driver behind sustainability reporting. The research highlights the critical role of independent assurance in enhancing the credibility of these disclosures and calls for strengthened regulatory frameworks to ensure transparent, effective reporting that meets international standards (Posadas et al., 2023; Doni et al., 2020). By examining the Icelandic context, the paper provides valuable insights for policymakers and corporate entities on the need for legislative improvements. It anticipates future regulatory tightening to enforce more comprehensive sustainability reporting requirements, contributing to the discourse on mandatory versus voluntary reporting mechanisms.