Evaluating extra‐financial reporting: The case of the German ranking of sustainability reports

Abstract

Purpose

The purpose of this paper is to introduce a long‐time report evaluation project of the Institute for Ecological Economy Research (IÖW) and the business network “future – verantwortung unternehmen”.

Design/methodology/approach

On a regular basis, the IÖW/future‐Ranking evaluates the content and communicative quality of sustainability and CR reports of Germany's 150 largest companies. The project provides a platform where stakeholder expectations concerning corporate responsibility and transparency are synthesised into a comprehensive catalogue of reporting requirements. These criteria have to be met by the companies to reliably show sustainability commitment.

Findings

The evaluation of the reports not only makes the sustainability reporting practice of companies comparable and transparent to the public. The set of criteria itself also serves as a reporting framework for companies and thus enhances directional certainty about corporate contributions to sustainable development. It is itself subject to a periodic evaluation and adaptation by means of dialogue and feedback processes with representatives from industry, politics and NGOs.

Practical implications

The paper discusses the process of ranking and the possibilities for future developments in this.

Originality/value

The process described has had little academic exposure and so the paper provides an original insight into a practical subject which has academic interest.

Citation

Gebauer, J. and Hoffmann, E. (2009), "Evaluating extra‐financial reporting: The case of the German ranking of sustainability reports", Journal of Applied Accounting Research, Vol. 10 No. 3, pp. 224-234. https://doi.org/10.1108/09675420911006424