The Commission launched this study, "The state of play in sustainability reporting in the European Union", following a series of interactive workshops on Corporate Social Responsibility transparency and disclosure in 2009-10 by DG Enterprise.
The Commission's aim in undertaking the study was to illustrate how companies deal with CSR reporting in practice. Companies reporting on CSR act as a lever for more CSR to be undertaken.
The study looks at:
- how companies report and the challenges in reporting,
- the extent to which companies' reporting practices and readers' needs match, and
- what public policy instruments are available to stimulate reporting. The study notes the extent to which CSR reporting has increased in recent years – although it clarifies that there is still a lot to do.
The study shows that companies report because it enhances reputation, even though for some it is costly. Companies face challenges in selecting what to report on, in how sensitive different data is, in organising content, and in correctly pitching quality.
The research reveals that readers of CSR reporting look for a genuine attempt by companies to honestly and realistically portray their CSR activities, in a way that is a useful contribution to readers' assessment of the sustainability of companies' activities.
Where the study matches companies and readers' perspectives, it finds that regulation of reporting, CSR reporting integrated with financial reporting, and stronger stakeholder engagement are key influences in the face of certain unmet needs of readers.