From words to action: SDG reporting insights in the Italian private sector

Purpose: This study aims to verify if information on sustainable development goal (SDG) measurements or achievements is included in nonfinancial reports, highlighting the most disclosed SDGs and the reasons behind their prioritization. Design/methodology/approach: The collocation analysis and logDice measurement were performed on the 206 nonfinancial reports of Italian companies published in 2022. Findings: Companies mainly disclose information on the SDGs they can easily influence through business activities (SDGs 8, 7 and 12) while focusing less on wicked problems, which are more challenging to measure and have less effect (SDGs 1, 2 and 16). The information in the reports is becoming more quantitative. It aims to measure companies’ impact on pursuing the SDGs, and a qualitative description of adopted corporate policies and actions complements it. Research limitations/implications: Results highlight the need to urge policymakers to create a unified SDG reporting framework. The systematization of the reporting structure would assist enterprises in preparing their reports and help stakeholders compare the results of different organizations. It would prompt companies to improve their internal control activities, consequently positively affecting corporate accountability and the pursuit of SDGs. Furthermore, more training would be needed to educate businesses on the role they can play in all 17 SDGs. Originality/value: To the best of the authors’ knowledge, the research is the first attempt to use natural language processing methods in SDG reporting studies. This allowed researchers to study the whole population available, neglecting the sampling process, not missing any data available and bringing insights nonexistent in research.