Sustainability Reporting in the Retail Sector of South Africa

This research analysed the sustainability reports of six retail companies that are listed companies in South Africa and part of the FTSE/Johannesburg Stock Exchange (JSE) Responsible Investment Index. A sustainability report provides internal and external stakeholders with an overview of the economic, environmental and social dimensions of the company. The 2030 Agenda for Sustainable Development covers a wide range of interrelated global goals, including poverty eradication, economic growth, social inclusion, environmental sustainability and peace for all by 2030. The 17 United Nations Sustainable Development Goals (UNSDG) include universal goals aiming to promote more inclusive societies, fight inequalities and recognise the importance of cooperation and partnerships in pursuit of sustainable development along with human development. A content analysis schedule was developed to provide the basis for the information to be extracted from the sustainability reports. Three categories, namely, biographical information, reporting format and the theoretical framework, were included in the schedule. The results show that only 49% of the companies used sustainability reports, while 17% used annual integrated reports, abridged integrated reports or sustainability living reports, respectively. The majority (67%) of the companies used recognised frameworks and legislation as their guiding framework in developing their reports, for example, the Global Reporting Initiative (GRI) Framework, King IV (2016) Edition, South African Companies Act 71 of 2008, the UNSDG and Broad-Based Black Economic Empowerment (B-BBEE). The majority of the sustainability reports focussed on social issues, while governance issues are sparsely reported on. As companies emerged from the global COVID-19 pandemic, the retail sector is growing at levels not seen in 20 years and retailers can be the frontrunners to achieve the stated sustainability goals. Some important trends are also evident from the results and include the need for a regulator for sustainability reporting and the standardisation of sustainability report content in South Africa.