The Narrative Component of Corporate Sustainability Reporting under the CSRD Implementation

The transformation of corporate reporting towards mandatory ESG disclosure is accompanied by a rapid increase in the role of the narrative component as a key means of communication between a companies and their stakeholders. This study aims to quantitatively assess, conceptually characterise, and identify quality challenges of the narrative component in sustainability statements, in the context of the transition from voluntary to mandatory reporting and the implementation of CSRD. The subject of the study is the narrative data type as the structurally dominant element of disclosures within the sustainability reporting system. The methodological framework combines quantitative and qualitative approaches. Quantitative analysis involved the classification of GRI data points using MS Excel tools. Comparative analysis was applied to juxtapose the disclosure requirements of the GRI and ESRS standards. It has been established that the narrative data type is structurally dominant in both sets of standards, providing quantitative confirmation of the 'narrative turn' in corporate reporting. Significant variability in report length across the first CSRD cycle has been identified, driven by cultural reporting traditions and industry practices. Systemic quality issues in narrative disclosures have been characterised. A structural imbalance has been established between the dominance of the narrative type in sustainability reporting and the insufficient development of verification methodologies. The theoretical significance of the study lies in the first quantitative confirmation of the 'narrative turn' at the level of reporting standard architecture, extending the empirical base of narrative accounting research. The practical significance of the findings is determined by their value for entities implementing CSRD/ESRS requirements, auditors, and regulators, including in the context of implementing these requirements in Ukraine. The scientific novelty of the study consists in the comprehensive quantitative characterisation of the narrative component of the GRI standards and its comparison with the ESRS standards. Future research prospects are associated with content analysis of sustainability report texts to assess the quality of narrative disclosures. Article type: empirical-theoretical.