The preparedness of “first wave” companies to the European corporate sustainability reporting directive (CSRD)
Year: 2026
Type: article
Abstract: Purpose This study aims to examine the degree of preparedness of companies subject to the first wave of implementation of the Corporate Sustainability Reporting Directive (CSRD), assessing the extent to which they have adopted new reporting practices that significantly depart from previous requirements. It also examines the factors explaining differences in preparedness across companies. Design/methodology/approach The empirical setting comprises Portuguese listed companies subject to the CSRD from 2024 and uses content analysis of corporate reports to assess the implementation of the required sustainability reporting practices. A score was developed to capture the level of preparedness, and multivariate analysis was performed to examine its determinants. Findings There are differences in preparedness among companies in the first wave of CSRD implementation operating within the same securities market, with companies included in a benchmark stock index adopting most new sustainability reporting requirements as early as 2023. Company size and inclusion in a benchmark index act as key drivers of earlier and more comprehensive adoption. Social implications The findings demonstrate how the CSRD is implemented at a micro level within a national context. The identified determinants of companies’ preparedness can support the design of policies and guidance that facilitate the transition to more stringent sustainability reporting practices. Originality/value The reporting practices are analyzed over a three-year period (2021–2023). To the best of the authors’ knowledge, the effect of inclusion in a benchmark stock market index on corporate reporting practices is examined for the first time and is confirmed as a determinant of the level of preparedness for the CSRD.
Source: Accounting Research Journal
Authors: Cecília Carmo, Fábia Rodrigues
Institution: University of Aveiro
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Award: G2041007122
OpenAlex ID: W7164879934