Is the Quality of Sustainability Reporting Practice Factor Driven?-Evidence from Listed Companies in Bangladesh

A company can effectively communicate their measures taken for achieving sustainability in economic, environmental, social areas through their reporting practices. That makes sustainability reporting practices an effective strategy. The objective of this study is to investigate whether any factor affects the quality of sustainability reports produced by listed companies in Bangladesh. Using a disclosure checklist based on Global Reporting Initiative (GRI) guidelines pertaining to economic, social, and environmental issues, this study investigated the sustainability reporting practices of listed firms in Bangladesh. The study collected data from the 2023 annual reports of 107 sample companies listed on the Dhaka Stock Exchange (DSE). The findings of the study show that separate sustainability reports (P=0.001) improve the quality of sustainability reporting. Other factors, such as the size of the company, age, the firm’s profitability, and the leverage of the firm, do not affect the sustainability reporting quality significantly. It reflects that the companies that include separate sections for sustainability disclosure in their annual reports have higher reporting quality than others. The findings will support businesses to understand their comparative position in showcasing their sustainability measures through reporting practices to the stakeholders. The results will also aid regulatory agencies in Bangladesh to build policy recommendations for implementing GRI-based sustainability reporting for listed companies.