Sustainability Risk Disclosure in Non-financial Reporting in Financial Institutions and Listed Companies

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: closed (30 December 2022) | Viewed by 14919

Special Issue Editors

Department of Accounting and Financial Audit, Poznań University of Economics and Business, Al. Niepodległości 10, 61-875 Poznań, Poland
Interests: internal audit in the organization; internal control in the organization; IT systems in accounting; external audit; reporting within the entity; accounting theory; intangible assets and intellectual capital, Internal audit, sustainable accounting (accounting for sustainable development); financial reporting; non-financial reporting
Special Issues, Collections and Topics in MDPI journals
Department of Accounting and Financial Audit, Poznań University of Economics and Business, 61-875 Poznań, Poland
Interests: sustainability accounting (accounting for sustainable development); sustainability assurance;non-financial reporting; financial reporting; financial auditing
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Effective assessment and analysis of sustainability risks are caused by various factors. Today, sustainability risk is becoming more and more the subject of disclosures in non-financial reporting. Nevertheless, sustainability risk remains underrepresented as it is hardly ever considered and discussed in science research. Moreover, in the face of new regulations and expectations of sustainability in financial institutions, sustainability risk in these entities is an important research niche.

This Special Issue invites various scholars to explore research from different perspectives offering new insights into creative approaches and systemic thinking as well as innovative processes for dealing with sustainability risk and its disclosure in non-financial reporting. Conceptual and theoretical as well as empirical and inter- and transdisciplinary papers are equally welcome. The Special Issue is focused on but not limited to the following topics:

  • Sustainability risk management and risk disclosure in non-financial reporting in financial institutions;
  • Trends in risk disclosure in the sustainability reporting of financial institutions;
  • Drivers of risk disclosure in the sustainability reporting of financial institutions;
  • Quality of sustainability risk disclosure in financial institutions;
  • Sustainability risk disclosure across different industries, including the background of financial institutions;
  • Sustainability assurance of risk disclosure in non-financial reporting in financial institutions;
  • Sustainability risk assessment tools in financial institutions;
  • Integration of sustainability risks in financial market participants’ investment decision in financial institutions;
  • Financial and non-financial stakeholders’ reaction to sustainability risk disclosure in financial institutions;
  • Corporate sustainability through non-financial risk management in financial institutions;
  • Conceptual frameworks for corporate risk disclosure in financial institutions;
  • Sustainability risk disclosure according to the corporate legitimacy theory;
  • Sustainability accountability toward risk disclosure in non-financial reporting.

Prof. Dr. Elżbieta Szczepankiewicz
Prof. Dr. Beata Zyznarska-Dworczak
Guest Editors

Manuscript Submission Information

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Keywords

  • sustainability risk
  • non-financial risk
  • ESG risks
  • integrated report
  • non-financial reporting
  • accountability
  • sustainability risk assessment
  • sustainability risk management
  • financial institutions

Published Papers (4 papers)

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Research

24 pages, 947 KiB  
Article
Risk Information in Non-Financial Disclosure
Risks 2022, 10(1), 11; https://doi.org/10.3390/risks10010011 - 03 Jan 2022
Cited by 7 | Viewed by 4092
Abstract
This paper aims to research the topics related to risk included in non-financial disclosure (NFD) of companies listed on the Warsaw Stock Exchange (WSE) and explore factors that influence the risk topics ratio in NFD. We applied a content analysis using topic modeling [...] Read more.
This paper aims to research the topics related to risk included in non-financial disclosure (NFD) of companies listed on the Warsaw Stock Exchange (WSE) and explore factors that influence the risk topics ratio in NFD. We applied a content analysis using topic modeling to discover latent risk topics in NFD. Next, with Ward’s clustering, we identified four groups of companies with a homogenous risk topic mixture. For causal analysis, to explain the differences in risk topics ratio, we used qualitative comparative analysis (QCA), which allowed us to obtain three paths (variable configurations) leading to the high ratio of risk topics in NFD. Our results suggest that companies disclosing risk information extensively in their NFDs concentrate almost solely on social risk matters. In contrast, companies talking briefly about environmental and social (E&S) risk prepare their NFDs with a more balanced distribution of E&S topics and their financial implication. In general, the companies’ exposure to E&S risk and the use of NFD standards and guidelines as well as the type of NFD impact the space dedicated to risk information. This paper contributes to academics and regulators, filling the gap about risk disclosure in the NFD, identifying the nature of corporate risk disclosures, and upgrading research about determinants of risk information in non-financial disclosure. Full article
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23 pages, 446 KiB  
Article
Practice of Non-Financial Reports Assurance Services in the Polish Audit Market—The Range, Limits and Prospects for the Future
Risks 2021, 9(10), 176; https://doi.org/10.3390/risks9100176 - 01 Oct 2021
Cited by 8 | Viewed by 2471
Abstract
In recent years, many companies have been issuing non-financial information which is used by a wide range of stakeholders in their decision-making processes. Considering the fact that such reports play an important role in financial markets, the information they provide should be submitted [...] Read more.
In recent years, many companies have been issuing non-financial information which is used by a wide range of stakeholders in their decision-making processes. Considering the fact that such reports play an important role in financial markets, the information they provide should be submitted to verification by an external, independent body. Our study, carried out in 2020, showed that only 2.3% of audit firms in Poland offer auditing non-financial report services. This was the starting point for our further investigations, the results of which will be presented in this article. The aim of the article is to identify the factors that limit or stimulate the performance of auditing in Poland with respect to non-financial data, and to determine the scope of operations carried out by audit firms which provide this service. The article comprises literature perusal and results of empirical studies among audit firms in Poland. Several important findings have emerged, including the fact that there are few companies in the Polish auditing market rendering the service of auditing non-financial reports, which are leaders in this field. The factor that most significantly limits the performance of non-financial report auditing is the low demand for such a service, which arises from the fact that verification and assurance of non-financial data are not obligatory for all reporting undertakings. Given that the number of CRS reports is increasing every year, it seems necessary to make full audits in order to confirm the reliability of non-financial information provided by reporting companies. Otherwise, stakeholders interested in these reports might be exposed to a risk of making inadequate decisions. Full article
15 pages, 403 KiB  
Article
Sustainability Reporting in Cooperatives
Risks 2021, 9(6), 117; https://doi.org/10.3390/risks9060117 - 11 Jun 2021
Cited by 14 | Viewed by 4177
Abstract
The aim of the present study is to examine the sustainability reports of cooperatives, which may play an important role in achieving the sustainable development goals and help to identify which economic, environmental, and social sustainability indicators cooperatives are currently reporting. For this [...] Read more.
The aim of the present study is to examine the sustainability reports of cooperatives, which may play an important role in achieving the sustainable development goals and help to identify which economic, environmental, and social sustainability indicators cooperatives are currently reporting. For this purpose, a total of 168 sustainability reports were examined for cooperatives that use the Global Reporting Initiative (GRI) G4 reporting, and that are included in the Sustainability Disclosure Database (SDD-GRI). As a result of this study, it was determined that the economic performance indicator disclosure levels of cooperatives that are active in the financial services sector are higher compared with those of cooperatives that are active in other sectors. In addition, it was also observed that the labor practices and decent work sub-category indicator disclosure levels of cooperatives active in the agriculture sector are lower compared to those of cooperatives that are active in the healthcare services and financial services sectors. Another outcome of this study was the finding that the social performance indicator disclosure levels for large-scale cooperatives are greater than those of small- and medium-sized (SME) cooperatives. Full article
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31 pages, 696 KiB  
Article
Identification of Going-Concern Risks in CSR and Integrated Reports of Polish Companies from the Construction and Property Development Sector
Risks 2021, 9(5), 85; https://doi.org/10.3390/risks9050085 - 03 May 2021
Cited by 5 | Viewed by 2802
Abstract
The question of non-financial and risk disclosures in corporate annual statements has been discussed globally for over a decade. The stakeholders of socially responsible organisations report a constantly growing demand for financial and non-financial information, including that related to threats and risks connected [...] Read more.
The question of non-financial and risk disclosures in corporate annual statements has been discussed globally for over a decade. The stakeholders of socially responsible organisations report a constantly growing demand for financial and non-financial information, including that related to threats and risks connected to the organisation’s activity. The aim of this paper is to determine whether companies from the construction and property development sector disclose financial risk in a CSR or integrated reports, and whether it is possible to assess going-concern risks based on the reports. The author analysed the content of selected CSR and integrated reports to describe the scope and structure of going-concern risk information in Polish companies from the construction and property development sector. The author reached two key empirical findings. Firstly, the results may suggest that companies are at different stages of the process of adopting integrated reporting, depending on the year of issue of the first CSR report. Secondly, less than half of the analysed companies disclose their financial data and risk, as well as describe their risk management systems. The study also shows that the ‘soft’ solutions set out in the regulations give companies considerable freedom in disclosing risk information, which is sometimes counterproductive. Therefore, it is of key importance to develop a single integrated standard for risk disclosures. In this paper, the author demonstrates a logical process of reasoning ensuing from the literature review through empirical research down to the implementation stage of conceptual model for disclosures on financial and going-concern risks in CSR and integrated reports. The present study makes a valuable contribution to CSR and integrated reporting theories and constitutes a breakthrough in identifying risks affecting socially responsible companies in Poland. The study fills a research gap in the area of non-financial (including information on risk) disclosures in annual reports of listed companies and other companies from the construction and property development sector. Full article
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