Measuring Corporate Compliance with the SDGs Based on the GRI’s ESG Reporting Methodology

Background: This research examines the efficiency of ESG reporting in corporate contributions toward achieving the SDGs, relative to the literature gaps and sectoral differences in reporting practices. It also highlights that full ESG disclosure is invariably instrumental in ensuring corporate transparency and accountability. Methods: The study used the GRI framework to analyze SDG compliance in sustainability reports from companies in the technology, automotive, energy, and health sectors. Results: Key findings include significant variations in SDG compliance across industries: the automotive sector demonstrated the highest compliance at 85%, while the technology sector showed the lowest at 49%. The study also found a notable difference between reported and substantiated SDGs, indicating that many companies engage in ‘rainbow washing’ or ‘cherry-picking’ SDGs to fit their agendas without fully integrating them into their strategies. The research concludes that although the GRI framework provide. Conclusions: The study urges the combination of other standards, such as ESRS and SASB, together with more intense regulatory frameworks and industry-specific guidelines to increase comparability and the credibility of the reports on sustainability.