The Role of Integrated Reporting in Advancing Sustainability: Reflections From Academic Literature and a Future Research Agenda

The diffusion of integrated reporting as a practice has stimulated an academic debate about whether integrated reporting has the potential to advance sustainability. The International Integrated Reporting Framework, which guides the preparation of integrated reports, focuses specifically on providers of financial capital and does not refer explicitly to sustainability in a significant way. But there is evidence that integrated reporting has enhanced the provision of sustainability disclosures. This chapter scrutinizes academic research on integrated reporting, focusing on sustainability published from 2010 to 2021. First, we synthesize arguments about aspects of integrated reporting that inhibit the advancement of sustainability as well as those that help advance sustainability. Then we explain a two-pronged approach for improving the sustainability orientation of any future connected reporting framework. The first one relates to building on the current strengths of integrated reporting for advancing sustainability. The second approach concerns tackling the obstacles to promoting sustainability through integrated reporting identified in the literature. This chapter also provides important insights for future research in the field.