Do the SASB standards contribute to the development of sustainability reporting? : A content analysis of Finnish banks’ sustainability reports from an investor’s perspective

Abstract

This study aims to answer what kind of development there has been in sustainability reporting in the Finnish banking sector from an investor’s perspective. The increased requirement from stakeholders regarding comparability creates a need to develop the sustainability related information to a point where this information can be used as base for investment and capital providing decisions. The study aims to add more knowledge in the research field around corporate social responsibility and environmental, social and governance investing. In the introduction, the background as well as the research problem is presented, followed by the purpose of the study and the research questions. This lies as the base for the research questions. To answer the research question, related terminology and theoretical reference is presented in chapter 2. In chapter 3, this paper presents widely the previous research regarding this research area. The goal of the study is to answer the research questions through a qualitative content analysis. The data sample is four banks listed on the Finnish stock exchange. The data analysed is either the sustainability reports or annual reports, which includes the sustainability reports from year 2019 to 2021. These reports were score-set through a self-created scoresheet, which answered the fulfilment and amount of information regarding the SASB standards for commercial banks. The methodology and analysis are furtherly presented in chapters 4 and 5. The results of the study show varying results depending on the size of the bank and the geographical areas where the bank is conducting its business. A notable factor affecting the fulfilment of standards is the usage of the standards as guidance. The study found issues with the fulfilment of standards with a qualitative measurement category, as well as the unwillingness to include data regarding high-risk customers and projects. In conclusion, the study found little to no development in the sustainability reports from the perspective used. Through this, the study confirms findings from earlier studies and contributes to the research that critically views sustainability reporting and its development.