A Systematic Literature Review of Sustainability Reporting and Materiality

Abstract: This systematic literature review underscores the critical importance of materiality within the realm of sustainability reporting practices. The objective of this research is to critically analyze the existing literature to elucidate the relationship between sustainability reporting and materiality. Furthermore, it delineates the trajectory and scope of contemporary research by performing a rigorous analysis of published works in sustainability reporting and materiality. Utilizing a systematic methodology, this study rigorously analyzes and evaluates 66 scholarly publications from an overall pool of 271 that pertain to materiality in sustainability reporting. It synthesizes these findings to elucidate critical insights, emerging trends, and foundational theories. The findings reveal a significant escalation in the volume of published literature regarding materiality within the context of sustainability reporting over the past decade. Notably, the Italy is the foremost contributor to this work. Theoretical frameworks, particularly stakeholder and legitimacy theories, are widely adopted in this discourse. The themes that have been underscored include the influence of materiality on the processes of sustainability reporting, methods of performance evaluation, stakeholder engagement, and the implications for decision-making, particularly in emerging economies. This study contributes to the existing body of literature through a critical synthesis of contemporary research on materiality in sustainability reporting. Analyzing the uniqueness and significance of various contributions provides valuable insights into the evolving patterns and challenges present in this field. Additionally, the study identifies notable gaps in the literature, particularly the lack of research addressing materiality in developing countries, and proposes proactive recommendations for future research and practical applications. Keywords: CSR, ESG Reporting, Materiality, Sustainability, Systematic Literature Review JEL Classification Number: G3, M14, Q01