Connecting Sustainable Development and Corporate Sustainability through a 2030 Agenda Disclosure Index: Evidence from the Top-listed Iberian Companies

Abstract

To conciliate theories regarding the connection between corporate sustainability and sustainable development, this study presents a 2030 Agenda Disclosure Index compatible with different perspectives and standards, and which is tested in the contents of the sustainability reports of the top listed Iberian companies. Unlike studies that construct the SDG contribution variable as a dummy, reflecting only ‘whether” and not ‘how’, our framework introduces content elements under ‘top-down’ and ‘inside-out’ approaches, which emphasizes management, monitoring and ability to connect with stakeholders, and reflecting different levels of alignment, from symbolic to substantive. Despite the observed improvement of the index and sub-indices over time, the contribution to sustainable development by Iberian companies can be considered, on average, mediocre and with room for improvement, especially in stakeholder engagement and monitoring, and in Portugal. In addition to business characteristics (location, size and sector), aspects such as adherence to frameworks and standards (UNGC and GRI) and benchmarking (DJSI) have been shown to be linked to increased substantiveness of indices or sub-indices; but also, more internal aspects such as ethical codes, sustainability committees and board size are determining factors. Thus, beyond transparency and disclosure, the framework introduces content and contextual elements that may be of interest to academics, managers and regulators concerned about corporate rhetoric or greenwashing.