This commentary reflects on the implications of Spain’s regulatory sustainability
reporting environment that originates from the Corporate Sustainability
Reporting Directive. It identifies four major shifts that the Directive’s
transposition will induce in corporate reporting practices: (1) the expansion in the
number of companies required to report sustainability information and its
subsequent influence on non-mandated firms, (2) the compulsory adoption of the
European Sustainability Reporting Standards, (3) the requirement for the
assurance of sustainability information, and (4) the digital tagging of
sustainability disclosures. Each of these changes presents challenges for entities
within the scope of the Spanish transposition. Viewed from a normativity
perspective, the commentary examines how prior practices among Spanish
companies and the historical context of sustainability reporting regulations might
shape these challenges and the strategies companies may employ to address them,
which are crucial for the emergence of norms from SR regulation. Additionally,
the commentary identifies several areas for further academic research arising
from these four changes. Beyond its implications for future research, the current
sustainability regulatory landscape also highlights the need for academia to
actively promote and engage in sustainability accounting and reporting education.
