Analysing SDG disclosure and its impact on integrated thinking and reporting

Purpose: The study aims to empirically investigate whether the disclosure of Sustainable Development Goals (SDGs) affects the level of integrated thinking and reporting (ITR) on a sample of European listed companies. Design/methodology/approach: The sample focusses on companies listed to the STOXX Europe 600 Index. Data have been gathered from Refinitiv DataStream for the period 2019-2020 for the measures of ITR level and SDG disclosure. Then, a multivariate regression analysis is developed to test whether or not, and if so, to what extent, SDG disclosure affects the level of ITR. Findings: SDG disclosure has been increased over time and companies have primarily focussed on SDG 8, SDG12 and SDG 13 demonstrating their awareness on sustainability issues close to the core business and on the climate urgency. Furthermore, SDG disclosure leads to a higher level of ITR meaning that SDG disclosure is an important pillar contributing to ITR. Research limitations/implications: The empirical analysis has not deeply investigated each component of ITR and SDG disclosure. Practical implications: The research can be useful for companies aiming to improve their commitment towards the SDG implementation with an integrated approach. Moreover, the study sheds light on the importance of the SDG disclosure as a determinant of ITR. Originality/valu: eThe research contributes to literature in the stream of sustainability accounting, by adding new insights on ITR linked to SDG disclosure. To the best of the authors' knowledge, the originality of the study lies in the inclusion of SDG disclosure as a determinant for ITR that has not been analysed by academics yet.