Value Creation Through SDG Reporting: An Empirical Analysis of SDG Reporting in the Nordic Region

Abstract

The purpose of this study has been to analyse the potential of corporate SDG reporting to create value for Nordic companies and societies. By exploring current reporting practices of actors in the region, the study also aims to assess how the value of observed disclosures on the SDGs can be improved in order to foster the collective creation of shared value.
Through a content analysis of the present SDG reporting of 50 Nordic companies, the study initially explores the patterns of recent disclosures, i.e. by investigating how companies are presently reporting on SDG priorities. Subsequently, a comparison has been made between these focus areas and the elicited national priorities for the SDGs within the Nordic societies. Building on this analysis, the study moves on to examine how relevant societal parties are perceiving the value of current SDG reporting. Based on 12 interviews with a broad spectrum of SDG stakeholders in Denmark, the study outlines the types of value offered by corporate reporting on the goals and the prevailing stakeholder expectations to the phenomenon.
In general terms, the study finds the SDG reporting of Nordic companies to largely deviate from national agendas, and that the value of current disclosures is perceived as inadequate and of a principally low quality. However, the study also finds that SDG reporting holds great potential to create value through various strategy and reporting aspects. Hence, this study develops ten distinct recommendations regarding comparability, reliability, materiality and impact, which aim to holistically improve the value of present SDG reporting in the Nordics.