This study critically examines the roles of EFRAG SRB and ISSB in advancing sustainability standard-setting at European and global levels. It investigates how these standard setters navigate alignment challenges while addressing unique stakeholder priorities and the broader implications for the sustainability reporting landscape.
A detailed thematic analysis of over 500 publicly available documents and 178 h of audio recordings from EFRAG and ISSB meetings and discussions (March 2022–September 2024) is conducted. The research uses Alvesson and Deetz’s (2000) critical analysis framework, encompassing insight, critique and transformative redefinition phases.
The study identifies key themes, such as interoperability, materiality, connectivity and digital taxonomy and highlights both convergence and divergence in the approaches of EFRAG and ISSB. Notable differences, including the double materiality focus of EFRAG versus ISSB’s investor-centric materiality, expose tensions that influence the standard-setting process.
This research advances the understanding of socio-political dynamics in sustainability reporting and their impact on global standardization efforts. Future research can explore how materiality interpretations affect corporate practices and stakeholder engagement.
Insights are offered for practitioners and policymakers managing compliance with dual standards, emphasizing the need for integrated frameworks and enhanced connectivity between financial and sustainability reporting. This research calls on both standard setters to consider the potential for integrated reporting to help with connectivity and stakeholder engagement.
By integrating resistant innovation concepts with platform dynamics, this study contributes novel perspectives on the alignment of sustainability standards, emphasizing the influence of regional and global socio-political factors. It provides a summary of the current state of play between these two key standard-setting bodies and outlines numerous avenues for future research.
