Addressing Symbolic Versus Substantive Disclosures Under CSRD/ESRS E5 in the Circular Economy Disclosure of the Automotive Industry

ABSTRACT This study examines how European automotive companies disclose circular economy (CE) information in light of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) E5. Using a mixed‐methods, data‐driven approach that combines keyword analysis and latent Dirichlet allocation (LDA) topic modelling on 53 corporate sustainability reports, the research identifies the main CE disclosure themes and evaluates their alignment with ESRS E5 requirements. Results reveal a strong dominance of symbolic communication, focused on compliance rhetoric and waste management, over substantive disclosures that reflect genuine engagement with circular strategies such as reuse, remanufacturing or regeneration. The findings expose the sector's limited preparedness for the new EU sustainability reporting framework and highlight a persistent reliance on linear production models. The study offers empirical evidence on the symbolic–substantive dichotomy in CE reporting and provides actionable insights for policymakers, regulators and firms aiming to strengthen substantive sustainability disclosure.