The role of sustainability reporting in strategic management

Purpose The study aims to explore the role of sustainability reporting in strategic management. It examines how sustainability reporting affects strategy implementation (single-loop learning) and strategy formulation (double-loop learning). Design/methodology/approach Using a case-study methodology, 22 semi-structured interviews were conducted at a large mining company. Additionally, secondary data, including the company’s sustainability reports from 2018 to 2023, were gathered. A thematic data analysis was used. Findings The study shows that sustainability reporting contributes to strategic management. More specifically, sustainability reporting facilitates strategy implementation (single-loop learning) by identifying deviations, prescribing actions and clarifying responsibilities. Moreover, it facilitates strategy formulation (double-loop learning) by supporting materiality analysis and external benchmarking, identifying strategic uncertainties and reassessing and adjusting the strategy. Research limitations/implications This case study is exploratory. While NordMine represents a unique case, it is possible that studying a different company would result in different insights. Therefore, future longitudinal case studies are suggested to build on and further develop the findings presented in this paper. Practical implications The findings originate from a resource-intensive company that is at the forefront of sustainability transition and has recently reformulated its strategy toward sustainability. The study provides detailed insights into how sustainability reporting can be used by practitioners in different industries to facilitate strategic management, for example, by identifying sustainability key performance indicators and improving their follow-up. Originality/value The study contributes to the literature by problematizing the link between sustainability reporting accounting and strategic management. It shows how sustainability reporting affects processes and activities that are usually considered to be related to strategy formulation (interactive control) and implementation (diagnostic control).