Non-financial reporting in the European Union: current issues and prospects

This chapter aims to illustrate the state of the art in the presentation of non-financial reporting by companies in the European Union in order to ensure sustainable behaviour and actions, be accountable to stakeholders and create long-term value. Non-financial reporting is also referred to as sustainability reporting, developed by companies increasingly dedicated to corporate social responsibility (CSR) and sustainability (Adams & Abhayawansa, 2021; Lokuwaduge & Heenetigala, 2017; Stacchezzini et al., 2016; Stolowy & Paugam, 2018). In this scenario, the analysis of non-financial outcomes or sustainable perfor-mance of companies is jointly linked with environmental, social and governance (ESG) factors and the United Nations Sustainable Development Goals (SDGs) (www.un.org). Our analysis contributes to the main theories of corporate reporting and disclo-sure (Marchi, 2019; Potito, 2021) and social and environmental accounting (research) or sustainability accounting—SEA or SEAR—(Bebbington et al., 2009; Bebbington & Unerman, 2020; Deegan, 2002; Gray et al., 1995; Gray & Bebbington, 2001; Guthrie & Parker, 1989; Larrinaga & Bebbington, 2001) to advance the literature examining non-financial reporting or sustainability reporting and sustainable disclosure