Digitalization of Corporate Reporting: Towards Integrated ESG Disclosures

Environmental, social, and governance (ESG) reporting has gained prominence in recent years due to increasing awareness and scrutiny from regulators, financial market participants, and other stakeholders such as employees and customers. This chapter explores the evolution of corporate reporting and discusses the link between corporate reporting, ESG reporting, and digitalization. Additionally, the chapter discusses how digitalization has transformed corporate reporting and ESG disclosures by enabling the use of big data, big data analytics (BDA), internet of things (IoT), artificial intelligence (AI), machine learning (ML), and cloud-based platforms in ESG reporting. These digital technologies facilitate data collection, data processing, data storage, and data analysis in an accurate and efficient manner, resulting in reliable reporting of economic, ESG aspects of a business. Authentic ESG disclosures that are supported by digital tools, thus, improve businesses’ public image and investors’ confidence, help to mitigate risks, and ensure compliance with evolving accounting standards and regulations on sustainability. Therefore, leveraging digital innovations in corporate reporting and ESG disclosures is crucial to create value in the long-term, promote economic growth, and address environmental and social challenges in a sustainable manner.