The potential of integrated reporting to enhance sustainability reporting in the public sector

Abstract

This paper examines the influence of integrated reporting (IR) on the sustainability reporting practices of a state-owned enterprise through a content analysis of their reports and interviews with report preparers. The findings show a steady increase in the quantity and quality of sustainability disclosures. In 2012, the organization chose to adopt the IR framework in order to enhance sustainability reporting for all stakeholders. The IR process resulted in a more balanced disclosure of material aspects of sustainability. However, while IR has the potential to enhance public sector sustainability reporting, inter-generational equity issues were ignored.

Keywords:

• Integrated reporting (IR)
• public sector sustainability reporting
• social and environmental reporting
• state-owned enterprises

Additional information

Notes on contributors

Monica Montecalvo

Monica Montecalvo is Senior Auditor at Ernst & Young in Bologna, Italy.

Federica Farneti

Federica Farneti is Associate Professor in Accounting at the University of Bologna, Italy.

Charl de Villiers

Charl de Villiers is Professor of Accounting at the Graduate School of Management at the University of Auckland, New Zealand, and Professor in the Department of Accounting, Pretoria, South Africa.