From Policy to Practice: Exploring Corporate Biodiversity Disclosure under the ESRS E4 in the Italian context

Purpose – This study aims to investigate how Italian listed companies disclose biodiversity-related information under the emerging European Sustainability Reporting Standards (ESRS E4). Specifically, it seeks to develop an index to assess the extent and quality of corporate biodiversity accounting and aims to advance the academic debate on corporate accountability for nature. Moreover, it explores the financial and corporate governance determinants influencing such reporting. Design/methodology/approach – Using a qualitative content analysis of sustainability and non-financial reports published by 58 Italian listed firms, a Biodiversity Disclosure Index (BDI) will be developed within the ESRS E4 framework to evaluate nature-related disclosure across six key areas. Furthermore, financial and corporate governance data are also collected to analyse potential explanatory factors. Expected findings – Preliminary analysis of the sample composition suggests that biodiversity reporting practices are likely to differ across firms, depending on factors such as size, industry, and market segment. Moreover, these insights will guide the next stage of analysis, where the BDI will be applied to assess actual reporting patterns. Practical implications – The expected empirical evidence will offer useful guidance for companies that aim to improve the comprehensiveness and consistency of their reporting in accordance with ESRS E4 requirements. Linking disclosure practices to governance and financial features may also foster greater internal awareness, accountability, and integration of nature-related issues into strategic decision-making and corporate sustainability management. Originality – The research provides one of the first ESRS-based assessments of corporate biodiversity disclosure, thus extending the prior academic literature. It also integrates financial and governance dimensions to enhance understanding of how companies operationalise nature-related accountability within the new European regulatory context.