Non-financial reporting between information and transformation: Taking a corporate sustainability due diligence approach to advancing sustainable and responsible business conduct

Preceding the SDGs but also after their adoption in 2015, companies are increasingly required to issue non-financial sustainability reports on issues like human rights, labour, the environment and climate change, as well as due diligence processes to identify and manage risks and impacts. There has also been a rise in demands on companies to undertake corporate sustainability due diligence, either on a voluntary basis guided by international soft-law frameworks or based on binding legislation. Both reporting and due diligence demand resources on the part of companies. The chapter argues that extending the due diligence process and focus to identify potential for the company’s contributions to sustainable development maximises the outcome of the resources invested in the process for advancing sustainable development, including SDG implementation. While the information and transformation functions of non-financial reporting are often separated in mandatory requirements, there is no inherent conflict between reporting to fulfil an informational function and for the company to adopt a transformational approach for its own purposes to learn and adapt to societal needs, including for SDG contributions. Combining corporate sustainability due diligence with a transformational approach to non-financial reporting can help uncover development needs and SDG potential in the company’s operating contexts.