Beyond apples and oranges: unraveling the complexity in corporate sustainability reporting

Abstract

Purpose: This investigation highlights the discrepancies in sustainability reporting practices, and their implications for sustainable service. Design/methodology/approach: A comparative analysis methodology was employed, examining sustainability reports from similarly situated companies, specifically PepsiCo and Coca-Cola and The Home Depot, Lowe’s and HomePro. This approach was chosen to uncover variances in sustainability reporting and practices within these sectors using the Sustainability Accounting Standards Board (SASB) guidelines which all four firms followed in their sustainability reports. Findings: The study reveals significant disparities in how companies within the same industry apply SASB guidelines. These inconsistencies highlight a broader issue of non-standardization in sustainability reporting, leading to challenges in effectively evaluating the relative performance of companies in the same sector. Practical implications: The findings suggest managers must prioritize standardized and transparent sustainability reporting to build stakeholder acceptance and trust. Originality/value: This paper contributes to the existing literature by providing a detailed comparison of sustainability practices in two distinct industry sectors. It offers new insights into the challenges and importance of standardizing sustainability reporting and the potential impact on stakeholders.