Content Analysis of Sustainable Development Goal (SDG) Reporting Practices: Evidence from Bahraini-Listed Companies

Abstract

To analyze the extent of Sustainable Development Goal (SDG) reporting by all companies listed in the Bahrain Bourse, we investigated their levels of engagement with reporting their contributions to and progress towards achieving the SDGs. The analysis was conducted through content analysis based on the PwC (2016) and GRI (2016) frameworks, in addition to the business reporting indicators for the SDGs. The results provide evidence for a steady increase in the SDG disclosure levels from 2019 to 2022. Moreover, the results for the business reporting indicators for the SDGs demonstrate that not all the SDGs were equally addressed by the sampled companies. The SDGs that organizations can easily integrate into their business models were more frequently addressed (SDGs 1, 3, 4, and 9) than those of a macroeconomic nature. The results highlight the need for business organizations to adopt sustainability practices and embed SDG-related disclosures into their reporting systems. Moreover, this study offers new insights into the role of accounting in advancing the achievement of the SDGs.

1. Introduction

The topic of SDG reporting has become a major area of interest for academics, regulators, and the business community since the establishment of the Sustainable Development Goals (SDGs) by the United Nations General Assembly in 2015. The SDGs consist of 17 objectives, broken down into 169 detailed and measurable targets that focus on tackling some of the most important issues and challenges faced worldwide and that aim to combat disparity, fight poverty, and promote equitable and accessible development [1].

While governments assume a key role in developing strategies to achieve the SDGs, advancing the global progress towards these goals necessitates a collaborative effort between governments and both public and private organizations [2]. As a result, the SDGs have imposed challenges on business organizations by setting higher expectations for their sustainability practices and corporate social responsibility. One of these challenges relates to incorporating sustainability into the fundamental structures and operations of businesses, which can be a resource-intensive initiative that requires innovative approaches to balance sustainable practices with profitability. In addition, investors prioritize businesses that are committed to the SDGs, putting pressure on business entities to illustrate their commitment. Finally, investors and stakeholders expect detailed disclosures on organizations’ contributions to achieving the SDGs, which requires reporting systems to plan, assess, and monitor their sustainable practices towards SDG achievement.

Standard-setters, regulatory bodies, and professional organizations have constantly worked to improve corporate reporting since the emergence of the SDGs, with a particular focus on sustainability-related issues. The establishment of the SDGs has offered businesses an effective platform to integrate them into their corporate reporting [3]. This approach also provides a means to expand and enhance the reporting of non-financial information, leading to more balanced corporate reports that meet various stakeholder needs. Supporting this view, SDG reporting has become vital to enabling business organizations to generate value and benefits for their various stakeholders [4]. Companies must determine their key SDG goals, embed them within their core business strategies, and concurrently promote sustainable development on a global scale.

A considerable body of research has addressed the topic of SDG reporting practices by companies in developed [5,6] and developing [7,8,9] countries. However, prior studies have either focused on individual case studies or more general regional analyses, ignoring the distinction of SDG disclosure within the unique context of Bahrain. Hence, this study intends to bridge this gap in the literature by presenting an in-depth analysis of the extent of SDG reporting by all companies listed in the Bahrain Bourse. Specifically, the study seeks to address the following research questions: (1) To what extent are Bahraini companies reporting on the United Nations SDGs? (2) To what extent are these companies disclosing their contributions and progress towards achieving the SDGs? (3) Are all the SDGs equally addressed by the sampled companies, and what are the most commonly cited SDGs? By answering these questions, the research fills the gap in the existing literature by providing a comprehensive empirical assessment of SDG reporting in a less-explored region, guiding to more effective sustainability reporting guidelines in Bahrain and presenting a foundation for future comparative studies.

The analysis was conducted through content analysis based on the PwC (2016) [10] and GRI (2016) [1] frameworks, in addition to the business reporting indicators for the SDGs. The results of the analysis show moderate–low levels of SDG disclosure by a sample of 37 companies (148 firm-year observations) from 2019 to 2022 based on the PwC framework, while the analysis based on the GRI framework presented little disclosure improvement. The results for the business reporting indicators for the SDGs showed that not all the SDGs were equally addressed by the sampled companies. Overall, the results provide evidence for a steady increase in the SDG disclosure levels from 2019 to 2021.

This study makes multiple important contributions to the established research field. First, it builds on prior studies analyzing SDG reporting in the GCC [11,12]. Second, unlike prior studies in which a single framework was used for SDG reporting analysis, in this study, we utilized the PwC (2016) and GRI (2016) frameworks and the GRI business reporting indicators. Third, the results highlight the need for business organizations to adopt sustainability operations and embed SDG reporting into their disclosure systems. Finally, this study offers new insights into the ways that accounting practices can support the attainment of the SDGs.

The remainder of this paper is organized as follows: Section 2 introduces the research context, Bahrain, and discusses the status and progress of the SDGs there. Section 3 outlines the theoretical framework and discusses the literature review. Section 4 presents the research methodology. Section 5 is dedicated to presenting and discussing the results. Finally, Section 6 concludes the paper.

2. Sustainable Development Goals: Bahrain Context

Bahrain is a high-income country with high human development levels and development indices equivalent to those of OECD countries. Bahrain had a gross domestic product of USD 43.21 billion in 2023, with an annual growth rate of 3.3%. Due to its diversification efforts, Bahrain has achieved a leading position in economic diversification amongst the Gulf Cooperation Council nations. This accomplishment stems from a deliberate strategy to move beyond the traditional reliance on hydrocarbon resources, which has resulted in a robust and varied economic framework that is underpinned by a thoroughly modern and seamlessly integrated infrastructure, alongside a comprehensive set of sophisticated legal frameworks that encourage investment and business development. In spite of these promising indicators, Bahrain is facing challenges in alleviating the impact of climate change on health, water, agriculture, and coastal resources, in addition to challenges in sustaining a flourishing economy that is attractive to businesses and investment, which provides citizens with rewarding jobs.

In a significant demonstration of its commitment to global development objectives, in 2015, Bahrain publicly declared that it had successfully met seven of the eight Millenium Development Goals (MDGs). This accomplishment highlighted the nation’s progress in addressing critical areas such as poverty reduction, education, and healthcare, showcasing its dedication to improving the well-being of its citizens in alignment with international standards [13]. Consequent to the announcement of the SDG agenda by the United Nations in 2015, the Government of Bahrain accepted its responsibility to consolidate sustainable development into its government plans. Bahrain’s commitment to the implementation of the SDGs is substantiated by its presence in the negotiations to formulate the SDGs at the national, regional, and international levels. Bahrain’s development path accelerated with the comprehensive development plan of the ruling authority and the launch of “Economic Vision 2030”, a vision that represents a comprehensive and forward-thinking plan designed to cultivate an economy that is not only globally competitive but also fundamentally sustainable and equitable. This vision aims to foster a thriving middle class, characterized by access to high-quality, well-compensated employment opportunities, ultimately leading to enhanced living standards and widespread prosperity across the nation [14].

In 2017, a Strategic Partnership Framework was signed between the Government of Bahrain and the United Nations (UN) that aims to achieve results based on Economic Vision 2030, contributing to the realization of the key strategic goals outlined in Bahrain’s Government Programme of Action for the period 2015–2018, while simultaneously aligning with the broader international objectives of the Sustainable Development Goals. To achieve this, UN system agencies play a pivotal role, offering expert policy guidance and facilitating capacity development, all grounded in internationally recognized norms and standards. This support aims to strengthen the fulfillment and rigorous monitoring of national policies and development plans. Furthermore, these agencies provide the government with essential technical expertise, enabling them to effectively navigate and address complex social, economic, and environmental challenges that may impede sustainable progress [15].

Furthermore, Bahrain published its first Voluntary National Review on the SDGs in 2018, in which it reported the achievements and progress made in its development efforts to implement the SDGs, in partnership with civil society, academia, and the private sector [16]. Following this, the second Voluntary National Review was issued in 2023, which presented the sustainability audit undertaken by the government on the progress made in the implementation of the 17 SDGs [17]. In this process, Bahrain made several cross-sectoral partnerships to achieve the SDGs. Promoting more public–private partnerships is critical to effectively achieving all of the goals.

3. Theoretical Framework and Literature Review

Scholars have investigated the motivations behind sustainability practices and disclosures, drawing on various theories. The most prominent among these are the legitimacy and stakeholder theories. According to the legitimacy theory, organizations attempt to gain and preserve their legitimacy by responding to society’s demand for more information as a means to demonstrate that their operations are in alignment with the prevailing social expectations [9,18,19]. Organizations often achieve this through increased transparency and the provision of comprehensive information, which serve as tangible means of showcasing that their operational practices and business conduct are consistent with the established system of societal values. In essence, organizations strategically use information disclosure to validate their existence and activities within the broader social context. Legitimacy represents a license for the organization to operate in its ecosystem. Hence, any deviation of the organization’s behavior from the social contract tenets results in a legitimacy gap [20]. Organizations might face threats to their legitimacy if they fail to provide proper disclosure, even when they adhere to societal expectations. As stated by Newson and Deegan [21], “legitimacy is assumed to be influenced by disclosures of information and not simply by undisclosed changes in corporate actions”.

Another theory used to explain corporate sustainability practices is the stakeholder theory, which is founded on the concept that organizations have obligations not only to their shareholders but also to a diverse array of stakeholders [22]. According to Mitchell et al. [23], any entity or entities deserving or requiring focus and attention from management. These stakeholders include individuals or groups who have the potential to influence or be influenced by the organization’s activities and decisions. Rather than focusing solely on maximizing shareholder profits, this theory emphasizes the importance of considering the interests and well-being of all parties involved, recognizing that organizations operate within a broader social, economic, and environmental context. To meet the needs and expectations of their stakeholders, corporate managers will manage resources and select activities that are beneficial to all of them. Therefore, organizations are not only encouraged to prioritize profitability but also to safeguard, enhance, and contribute to the community welfare. This is consistent with the purpose of the SDGs to meet the needs of all stakeholders of an organization, as described in the United Nations General Assembly (2015). According to this viewpoint, it is essential that all stakeholders have access to information not just regarding financial issues but also concerning social-, environmental-, and governance-related matters. This approach acknowledges that stakeholders are entitled to a comprehensive understanding of an organization’s activities, which goes beyond its financial performance to include its impact on society and the environment and its adherence to ethical and governance standards, enabling the organization to demonstrate its commitment to transparency, which fosters trust and collaboration with its various stakeholders [9].

3.1. The Adoption of the Sustainable Development Goals

Through the United Nations General Assembly, the global community committed to a transformative vision for the future by adopting the “2030 Agenda for Sustainable Development” in 2015, which articulates a comprehensive plan designed to address the interconnected challenges facing humanity, our planet, and economic prosperity. The agenda includes 17 goals and 169 targets, which build upon the foundation of the earlier Millennium Development Goals and aim to rectify the remaining gaps and accelerate progress towards a more sustainable and equitable world. The goals and targets are combined, inseparable, and harmonize the three elements of sustainable development: economic, social, and environmental.

As part of the Government of Bahrain’s commitment to achieving the SDGs, it hosted the second session of the Arab Forum for Sustainable Development in 2015, which resulted in the endorsement of the Bahrain Document, which involves 19 recommendations on the fundamental sustainable development issues in Arab States. In addition, at the sixth meeting of the Group of Experts on the SDG indicators, Bahrain represented the Gulf Cooperation Council [16]. Although the government assumes a central role in developing and executing strategies and tools to achieve the SDGs, to advance the global transition toward achieving the goals, a collaborative effort by the government, civil society, and public and private organizations is necessary [2]. Conforming to this, the government’s program has witnessed multisectoral collaborations within the governmental units, with the private sector, and with the international community [17].

3.2. Sustainable Development Goal Reporting

Since the emergence of the SDGs in 2015, organizations have been recognized as playing crucial roles in achieving sustainable goals and targets, given their significant societal impact. According to Hopper [24], there is an urgent need for reporting systems to assess, monitor, and hold organizations accountable for their responsibilities in supporting the attainment of the SDGs. Reporting on the SDGs allows organizations to demonstrate their commitment to and participation in achieving them, as reporting can support organizations in planning, executing, measuring, and communicating their efforts [25].

The 32nd session of the United Nations Conference on Trade and Development officially acknowledged the importance of accounting in enhancing company reporting, which is crucial for both financial stability and contributing to the fulfillment of the SDGs [26]. Among the 17 SDGs, the International Federation of Accountants highlighted 8 goals to which accountants and the accounting profession can make a substantial contribution: SDG 4 (Quality Education), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals). The International Federation of Accountants highlighted key considerations to empower the accounting profession to play a meaningful role in the global effort to achieve the SDGs. For example, accountants can help businesses to embrace sustainable business models by systematically consolidating sustainability information through governance, management, and reporting mechanisms. Beyond traditional financial reporting, the accounting profession holds a key responsibility in fostering the greater transparency of corporate climate-related activities, which involves encouraging and supporting the development of consistent and accessible disclosures and reports, thereby enabling stakeholders to make informed decisions based on reliable climate-related information. Finally, external auditors contribute significantly to the realization of sustainable development by providing independent assurance on the accuracy of national progress reports related to the SDGs, thereby lending credibility to the reported data [26].

Makarenko and Plastun [27] have articulated the professional responsibilities of accountants in the context of sustainable development reporting, suggesting that they act as creators, providers, keepers, and reporters of value. In terms of creating value, accountants are involved in the development and implementation of plans and policies to achieve the SDGs. In terms of providing value, accountants provide management with the relevant information necessary to formulate sustainable development strategies. In terms of keeping value, accountants support the protection of the financial, industrial, and social capital of the organization. And finally, in terms of reporting value, accountants enable the transparent communication of high-quality reports to stakeholders.

In the same vein, Dabbicco et al. [28] have claimed that SDG reporting should not only be utilized as a mean to simply present what has been accomplished in the past. They have proposed that policymakers are to benefit from SDG reports to decide how financial resources should be directed to the actualization of SDGs.

Subsequent to the establishment of the SDGs, international consulting firms carried out investigations examining the SDG disclosure practices by companies around the world. According to the results, 40% of the world’s 250 largest companies discuss the SDGs in their corporate reporting, with the percentages ranging from 83% in Germany to 31% in the United States [29]. Another international study on 31 countries and territories showed that 72% of the sampled companies mentioned the SDGs in their corporate reporting; however, only 14% mentioned specific SDG targets [10]. These findings indicate that although there was a fair level of awareness of and engagement with the SDGs, organizations in other parts of the world still fell behind in integrating the SDGs into their reporting systems.

Recently, there have been a growing number of studies investigating SDG corporate reporting practices. In a study by Erin and Bamigboye [7], the authors evaluated and analyzed the extent of the SDG reporting by companies from eight African countries (South Africa, Botswana, Nigeria, Ghana, Kenya, Uganda, Morocco, and Egypt) for 2016–2018. Using content analysis, the findings revealed that SDG disclosure in Africa is quite low, except for South African companies. In the same vein, the sampled companies demonstrated minimal concern for the SDG business reporting indicators. This study highlights the necessity of switching from optional to mandatory SDG reporting and also emphasizes that government institutions and policymakers need to foster enabling environments that support SDG realization through the implementation of robust accountability and transparency mechanisms.

In a study published in 2022, Erin et al. [8] undertook an empirical analysis of the SDG reporting by Nigeria’s 50 largest listed companies. Through the application of comprehensive content analysis, which incorporated the PwC framework, GRI framework, and business reporting indicators, the researchers concluded that the sampled Nigerian companies have demonstrated notably poor performances in their corporate SDG reporting, which the authors claim is due to the lack of a regulatory framework and management commitment. The authors point out that while governmental bodies are ultimately accountable for driving progress towards the SDGs, the actualization of the SDGs requires support from corporate organizations, and they emphasize that businesses must play a key role in translating the SDGs into concrete actions, which will contribute to the development of a sustainable future.

In the Indonesian context, Gutiérrez-Ponce and Wibowo [9] investigated the SDG disclosure levels by companies listed on the Indonesian stock exchange during the period 2017–2021. Their investigation revealed that the SDG disclosure in Indonesia increased by 60% from 2017 to 2021. In addition, they examined the factors that influence SDG disclosure and found that board gender diversity and the frequency of board meetings enhanced the SDG disclosure by the sampled Indonesian companies. In a more recent investigation to the Indonesian context, Muskanan et al. [30] examined how government-owned enterprises disclose their SDG contributions and how they showcase the commitment in realizing SDGs. They found that SDG disclosures by Indonesian government-owned enterprises are still at a basic level, demonstrating a lack of holistic integration of SDGs into strategic planning.

In a study in an Italian context [5], the authors investigated the extent to which SDG disclosure is diffused among Italian companies. The authors found that knowledge of the SDGs was prevalent within the business community, and that the SDGs were incorporated into the reporting of the most highly capitalized companies; however, they provide evidence for a lack of the key performance indicators associated with the disclosed SDGs.

In a study by Manes-Rossi and Nicolo [6], the authors focused on the energy sector, investigating the extent to which European companies are involved in SDG reporting practices. The authors conducted a content analysis on the non-financial reports of a sample of 15 European companies operating in the energy sector, finding evidence of increased attention among the sampled companies to the inclusion of SDG disclosures within their corporate reporting. However, the authors found that the companies’ SDG disclosures were symbolic, aimed at managing stakeholders’ perceptions by creating the impression of socially responsible business. Their investigation highlights the need to move from optional to mandatory non-financial disclosure, especially for companies operating in environmentally sensitive sectors.

In a recent study by Mazumder [25], Bangladeshi banking companies were examined to explore the relationship between the level of SDG disclosure and board gender diversity. An automated content analysis of 30 banking companies from 2015 to 2020 revealed a consistent in the level of SDG disclosure and confirmed a positive association between board gender diversity and SDG disclosure level.

The studies reviewed above underline significant variations in disparity in the level of SDG reporting across different contexts. Firstly, analysis of African countries [7,8] reveals poor reporting practices due to weak regulatory policies. On the other hand, studies from Indonesia [9] and Bangladesh [25] provide evidence for increasing SDG disclosures, that is attributed to management commitment and corporate governance. Secondly, when the quality of SDG disclosures is considered, studies by Izzo et al. [5] and Manes-Rossi and Nicolo [6] propose that the quality and the depth of SDG disclosures varies. It has been concluded that although SDG awareness is growing, transparent reporting and meaningful action are lagging. Finally, a recurring issue is the need for regulatory frameworks to enhance the quality and quantity of SDG disclosures, which is especially noticeable in studies conducted in Africa.

4. Research Methodology

In this study, we adopted the content analysis approach to analyze the SDG reporting practices of all companies listed in the Bahrain Bourse. To enhance the performance on environmental, social, and corporate governance (ESG) issues, the Bahrain Bourse joined the United Nations Sustainable Stock Exchanges initiative in 2019. Moreover, in a strategic move to enhance transparency and long-term sustainability within the capital market in Bahrain, the Bahrain Bourse issued ESG reporting guidelines to encourage the listed companies to systematically incorporate ESG considerations into their regular reporting procedures, thereby enhancing accountability and responsible business practices [31].

The analysis in this study covered a four-year period, from 2019 to 2022. The sample period began in 2019, coinciding with the Bahrain Bourse joining the United Nations Sustainable Stock Exchanges initiative, and the sample initially included 43 companies listed in Bahrain during the study period. A total of 6 companies were excluded from the sample for several reasons. Two companies were excluded due to the unavailability of reports, three non-Bahrain companies were excluded, and one company that has recently been delisted was excluded too. This resulted in a final sample size of 37 companies (148 firm-year observations). The list of selected sectors is presented in

Table 1. List of selected sectors.

Sectors	Number of Companies
Communications services sector	3
Consumer discretionary sector	5
Consumer staples sector	4
Industrial sector	3
Materials sector	1
Real estate sector	3
Financial sector	18
Total	37

. In addition, a detailed list of the sampled companies in each sector is presented in Appendix A (

Table A1. Detailed list of selected sectors.

Sectors	Number of Companies	Names of Companies
Communications services	3	Bahrain Telecommunications Company
		Bahrain Cinema Company
		Zain Bahrain
Consumer discretionary	5	Bahrain Duty Free Shop Complex
		Bahrain Family Leisure Company
		Banader Hotels Company
		Gulf Hotels Group
		National Hotels Company
Consumer staples	4	Bahrain Flour Mills Company
		BMMI
		Delmon Poultry Company
		Trafco Group
Industrials	3	APM Terminals Bahrain
		Bahrain Ship Repairing and Engineering Company
		Nass Corporation
Materials	1	Aluminium Bahrain
Real estate	3	Bahrain Car Parks Company
		Eskan Bank Realty Income Trust
		Seef Properties
Financials	18	Arab Banking Corporation
		Arab Insurance Group
		Bank of Bahrain and Kuwait
		Bahrain Commercial Facilities Company
		Bahrain Islamic Bank
		Bahrain Kuwait Insurance Company
		Bahrain National Holding Company
		Esterad Investment Company
		GFH Financial Group
		INOVEST
		Ithmaar Holding
		Khaleeji Bank
		National Bank of Bahrain
		Al Salam Bank
		Solidarity Bahrain
		United Gulf Investment Corporation
		SICO
		Ahli United Bank
Total	37

).

To analyze the SDG reporting practices by the sampled companies, annual and sustainability reports were analyzed through the content analysis approach. This approach is used to make valid and replicable conclusions from datasets [32] and is recognized as a robust and reliable method in sustainability accounting research, whether in developed [6,33,34] or developing [7,11,35] countries. Similar to the approach used by Erin and Bamigboye [7], the content analysis in this study was based on the PwC (2016) and GRI (2016) frameworks. The PwC framework describes nine principles on how business firms can quantify and disclose their SDG activities, while 15 indicators are established in the GRI framework to measure SDG reporting practices. Moreover, the business reporting indicators for each SDG were evaluated to demonstrate the compliance levels of the sampled companies.

In line with Erin and Bamigboye [7], for each of the frameworks, we employed a 0/1 disclosure index for the indicators/statements/information on SDG activities. Hence, if a firm reported an indicator, it was scored one (1), and if not, it was scored zero (0). Then, we calculated the average for the four-year (2019–2022) study period. Finally, the percentage average (%) for the disclosure was computed as follows:

$$\mathrm{T}\mathrm{h}\mathrm{e} \mathrm{o}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{l}\mathrm{l} \mathrm{p}\mathrm{e}\mathrm{r}\mathrm{c}\mathrm{e}\mathrm{n}\mathrm{t}\mathrm{a}\mathrm{g}\mathrm{e}={\displaystyle \frac{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l} \mathrm{a}\mathrm{c}\mathrm{t}\mathrm{u}\mathrm{a}\mathrm{l} \mathrm{a}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{g}\mathrm{e} \mathrm{s}\mathrm{c}\mathrm{o}\mathrm{r}\mathrm{e}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l} \mathrm{e}\mathrm{x}\mathrm{p}\mathrm{e}\mathrm{c}\mathrm{t}\mathrm{e}\mathrm{d} \mathrm{a}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{g}\mathrm{e} \mathrm{s}\mathrm{c}\mathrm{o}\mathrm{r}\mathrm{e}}}$$

The content analysis process involved multiple steps. It started with collecting annual and sustainability reports for the period from 2019 to 2022. The reports were collected from the sampled companies’ websites. To gain an overall understanding of the reporting style and the scope of the disclosed information, a thorough review was conducted. Later, we developed a detailed coding protocol based on the PwC and GRI frameworks. This involved a full list of keywords and phrases that are linked to each SDG indicator. Manual coding was carried out, and each report was analyzed to determine whether certain indicators were presented. The outcomes were recorded in spreadsheet organized by companies and years. Finally, the yearly scores, average scores and the overall percentages were calculated for each indicator, based on the coded data.

During the execution of the content analysis, few challenges were encountered. One of these related to accessing consistent and complete reports for all the sampled companies. In addition, there was a problem with heterogeneity in the reporting, as the reports of different companies vary significantly in terms of the content and structure, making the analysis time-consuming.

5. Results and Discussion

Table 2. SDG reporting disclosure (based on PwC framework).

No.	Key Indicators	2019 Score	2020 Score	2021 Score	2022 Score	Average Score	Overall Percentage (%)
1	Is the term SDG mentioned in the corporate sustainability reporting?	5	9	15	28	14	38%
2	Do companies identify priority SDGs?	4	7	13	25	12	32%
3	Are meaningful KPIs related to the SDGs disclosed?	2	3	7	7	5	14%
4	Do companies mention the SDGs as part of their business strategies or business models?	5	8	15	18	12	32%
5	Do companies specify their basic measurement approaches used to identify the SDGs?	0	4	9	9	6	16%
6	Do companies identify any reporting framework for the SDGs?	1	3	8	11	6	16%
7	Is the word “SDG” mentioned in the CEO or Chairman statement/report?	3	3	7	16	7	19%
8	Do companies have separate integrated reports on the SDGs?	2	3	8	8	5	14%
9	Do companies identify material sustainable development issues that affect value creation in their reports?	1	2	7	8	5	14%

presents the results for the SDG reporting disclosure based on the PwC framework. For the first reporting indicator, the results show that, on average, only 14 companies out of the 37 mentioned the SDGs in their corporate reports. Although the results show that the number of companies mentioning the SDGs in their reports significantly increased from 5 in 2019 to 28 in 2022, the average overall percentage is still low (38%). The significant increase in the number of companies mentioning the SDGs in their reports indicates a growing awareness of the SDGs, which may be due to increasing global pressure on sustainability reporting and the desire to meet stakeholders’ expectations. Similar results are revealed for the second indicator, as only 32% of the sampled companies identified priority SDGs in their corporate reports, indicating that the sampled companies paid limited attention to reporting their SDG activities. This implies that even when companies recognize SDGs, they do not prioritize specific SDGs in their reports, as a result of the lack of mandatory reporting guidelines on SDGs. The results for the third indicator show an even lower percentage, as only 14% of the companies disclosed relevant KPIs related to the SDGs. This finding aligns with that of Izzo et al. [5], highlighting a significant concern, given the importance of KPIs in measuring progress towards achieving the SDGs. These findings propose a common challenge by companies in translating SDG commitments into measurable actions, stressing a need for the development of robust systems to track and report on SDG performance.

For the fourth indicator, on average, 12 companies linked the SDGs to their business models, indicating that the majority of the sampled companies failed to integrate the SDGs into their business strategies. The integration of SDGs is essential for long-term sustainability, and the lack of integration by the sampled companies may reflect a short-term focus by management. The fifth indicator reveals that only a few companies (six on average) defined their measurement approaches to identifying the SDGs, which may be because of the lack of specific regulatory requirements in this regard. Similar results are shown for the sixth indicator, as only six companies identified their SDG reporting frameworks. The absence of standard measurement approaches hinders consistent and transparent SDG reporting, implying that many companies in Bahrain may lack the necessary tools to effectively communicate their SDG performance.

Furthermore, the seventh reporting indicator shows that only 19% of the sampled companies mentioned the word “SDG” in their CEO/Chairman statements, which could be due to the absence of a clear plan for the SDGs in their business strategies. This finding reflects the nature of the corporate governance landscape in Bahrain. Although significant progress in this area has been witnessed, the focus on sustainability reporting and the integration of SDGs in corporate communications may still be developing. The eighth indicator shows that 85% of the selected Bahraini companies did not have separate integrated reporting on the SDGs, as most of them tended to use a separate section on sustainability within their annual reports. Finally, the last indicator reveals that, on average, only five companies explicitly recognized and articulated sustainable development matters that influence their value creation processes. This finding indicates a significant gap in recognizing the link between sustainability and long-term value creation.

Table 3. SDG reporting disclosure (based on GRI framework).

No.	Key Indicators	2019 Score	2020 Score	2021 Score	2022 Score	Average Score	Overall Percentage (%)
1	Do companies mention the word “SDG” in their annual reports?	5	9	15	28	14	38%
2	Do companies specify any business cases regarding the SDGs?	5	6	11	17	10	27%
3	Do companies identify specific responsibilities for achieving the SDGs?	1	1	6	9	4	11%
4	Do companies map out the SDGs against their value chain processes?	1	2	7	8	5	14%
5	Do companies specify relevant SDG indicators and data collection processes?	2	5	8	9	6	16%
6	Do companies define priorities for their SDG performances?	3	6	13	14	9	24%
7	Do companies specify their SDG goals and KPIs?	1	3	7	9	5	14%
8	Do companies set a baseline and SDG goal type?	0	3	10	10	6	16%
9	Do companies specify their strategies for achieving the SDGs?	4	6	12	12	9	24%
10	Do companies announce their commitment to the SDGs?	5	9	15	28	14	38%
11	Do companies anchor the SDGs within their business processes?	5	7	10	10	8	22%
12	Do companies embed sustainability across all their business functions?	2	4	9	9	6	16%
13	Do companies specify their external partnerships and engagement regarding the SDGs?	5	7	13	15	10	27%
14	Do companies communicate their SDG performances?	5	6	11	15	9	24%
15	Do companies provide effective reporting on their SDGs?	2	5	12	12	8	22%

presents the results for the SDG reporting disclosure based on the GRI framework, in which 15 indicators are established to measure SDG reporting practices. The table presents the total averages for the four years (2019–2022) and the overall percentages for the 37 companies. For the first indicator, the results are consistent with those in Table 2, which reveal that only 38% of the sampled companies mentioned the word “SDG” in their annual reports. The analysis over the period 2019–2022 shows that the number of companies that mentioned the word “SDG” in their reports significantly increased from 5 to 28 over the four years (an increase of 460%). As global awareness of SDGs continues to grow, more companies are expected to incorporate SDGs into their reporting practices. In contrast, the results for the second indicator show that less companies were concerned about specifying detailed business cases regarding the SDGs in their reports, suggesting that even when companies mention SDGs, they may not necessarily present a clear rationale for their SDG engagement. The third indicator reveals that only a few companies (four on average) demonstrated a clear articulation of the roles and responsibilities in contributing to the fulfillment of the SDGs, which may indicate that while companies in Bahrain integrate SDG disclosure into their corporate reports, they need to take more steps to actively demonstrate their business cases for the SDGs. The absence of clear articulation of the roles and responsibilities may impede implementation of SDG-related activities.

Results for the fourth indicator show that only 14% of the sampled companies arranged their SDGs against their value chain processes. This indicates that many companies are not yet able to think strategically on how SDGs relate to their business models. Similarly, results for the fifth indicator show that, on average, only 6 out of the 37 companies specified proper indicators to measure and collect data on their SDG activities. Deficiency in measurement indicators and data collection makes it difficult to track progress of SDG initiatives. The sixth indicator reveals improved results for companies that successfully defined priorities for their SDG performances (nine on average), which implies that more effective engagement in SDG activities is essential for the actualization of the SDGs by 2030. Prioritizing SDGs enables companies to focus their efforts in the areas where they can exert the greatest influence.

Moreover, when the companies were reviewed to determine whether they specified their SDGs and KPIs, it was found that only 14% of the sample companies associated KPIs with their SDGs. This result indicates that many companies are not currently linking their SDGs commitments to measurables actions. Measuring performance against KPIs is crucial for stable and continuous improvement. In the same vein, only six companies, on average, set baselines and SDG goal types, implying that many companies are struggling to establish measurable SDG objectives. However, more companies (nine on average) defined their strategies for achieving the SDGs, which indicates notable progress in their SDG performances.

Furthermore, the 10th indicator shows that 38% of the sampled companies declared their commitment to the SDGs. The analysis over the period 2019–2022 shows that the number of companies announcing their commitment to the SDGs significantly increased from 5 to 28 over the four years. However, for the actualization of the SDGs by 2030, corporate organizations are expected to take more serious actions to demonstrate their intentions, as this cannot be achieved solely by the government. Although commitment is a crucial starting step, it is insufficient to drive meaningful progress. Companies are required to translate their commitments into specific actions and demonstrate how they are contributing to the actualization of the SDGs. Results for the 11th indicator reveal that 10 companies linked the SDGs to their business processes in 2022, while the 12th indicator shows that only nine companies embedded sustainability across their business functions in the same year. These results indicate that although some Bahraini companies declared their commitment to achieving the SDGs, many of them failed to demonstrate the changes made to their business models and strategies to operationalize the SDGs.

Results for the 13th indicator reveal that 27% of the sampled companies defined their external partnerships and engagement regarding the SDGs, as collaborations with external parties are valuable in engaging with SDG activities and the achievement of sustainability goals. Partnerships and collaborations can offer new perspectives and resources that can help companies to strength their impact on SDGs. Similar results are observed for the 14th indicator, where nine companies, on average, communicated their SDG performances to their stakeholders. In order to build trust and ensure that stakeholders are informed about the company’s SDG performance, effective communication is crucial. The limited communication observed for the sampled companies indicates that they are not adequately communicating their SDG performance with their stakeholders. Finally, the last indicator shows that 22% of the companies provided effective SDG reporting. These results imply that more steps are needed to enhance SDG reporting, as proper disclosure is fundamental to demonstrate that corporate strategies are aligned with societal norms and expectations [33]. A possible explanation for this finding is that the regulatory enforcement for SDG reporting is not sufficient in Bahrain.

Table 4. SDG and business reporting indicators (based on GRI framework).

SDGs	Reporting Indicators	2019 Score	2020 Score	2021 Score	2022 Score	Average Score	Overall Percentage (%)
(1) No Poverty	Report on the firm’s activities to support poor communities around its environment.	28	31	31	33	31	84%
(2) Zero Hunger	Report on the company’s efforts to end hunger through the support of a food campaign program or other means.	7	5	7	7	7	19%
(3) Good Health and Well-Being	Report on the firm’s activities to promote quality, healthy lives for both internal and external stakeholders.	28	32	32	34	32	86%
(4) Quality Education	Report on the firm’s activities to promote quality education and support education as part of its corporate social responsibility (CSR).	23	26	27	27	26	70%
(5) Gender Equality	Report on the representation of women in management and executive positions. Also, report ensuring equal pay for equal work between men and women.	13	16	19	24	18	49%
(6) Clean Water and Sanitation	Report on the proportion of recycling or safely treated wastewater.	5	4	8	9	7	19%
(7) Affordable and Clean Energy	Report on the increase in energy saved or percentage of energy from renewable sources.	5	9	14	14	11	30%
(8) Decent work and Economic Growth	Report on the percentage of workers who have permanent employment status with fair labor practices.	5	8	13	16	11	30%
(9) Industry, Innovation, and Infrastructure	Report on the company’s activities to support the inclusion of small-scale enterprises in their business operations.	11	15	22	22	18	49%
(10) Reducing Inequalities	Report on the company’s emphasis on equal opportunities for all employees. Also, report on the number of employees with diverse backgrounds and disabilities.	9	13	17	19	15	41%
(11) Sustainable Cities and Communities	Report on the company’s investment in transportation, sanitation, and energy. Also, report on providing safe and sustainable transportation for employees.	4	6	10	11	8	22%
(12) Responsible Consumption and Production	Report on the company’s proportion or percentage of recycled waste.	8	13	19	19	15	41%
(13) Climate Action	Report on the company’s target to manage climate-related risks and the measurement of its performance against targets.	2	7	13	13	9	24%
(14) Life Below Water	Report on how the company will address future risks of aquatic ecosystem depletion.	4	4	5	5	5	14%
(15) Life on Land	Report on how the company will address future risks of terrestrial ecosystem resource depletion.	4	5	9	10	7	19%
(16) Peace, Justice, and Strong Institutions	Report on the company’s activities to promote equity and fair business.	4	5	12	13	9	24%
(17) Partnership for the Goals	Report on the company’s investment in multi-stakeholder partnerships.	13	15	19	22	17	46%

presents the results for the SDGs with each business reporting indicator. For the first SDG (No Poverty), the results show that of the 37 sampled companies, 84% reported their activities in support of the communities around them. This finding is consistent with the undeniable efforts in Bahrain to eradicate poverty in all its forms so that no one lives under the international poverty line and 100% of the population live in households with access to basic services [17]. However, the sampled companies showed far less concern with efforts to end hunger (SDG 2: Zero Hunger), with just 19% of the companies reporting their efforts in this matter. A possible explanation for this might be that SDG 2 has a more macroeconomic dimension on which companies may have limited influence [10]. Considering SDG 3 (Good Health and Well-Being), 32 companies, on average, documented and shared detailed disclosures on their initiatives to improve the well-being and health of their internal and external stakeholders. In most of these disclosures, companies showcased their efforts to enhance the health, safety, and well-being of their employees.

Furthermore, the results for SDG 4 (Quality Education) show that 26 companies, on average, disclosed their activities to support and advance quality education as part of their corporate social responsibility. The support provided by the companies ranged from employee training programs to build competencies to sponsoring scholarships in partnership with higher education institutions. A total of 49% of the sampled companies disclosed information on their efforts towards enhancing gender equality (SDG 5). Although gender equality involves a wide range of issues, the sampled companies focused more on disclosing information related to gender diversity in their workforces, female representation on their boards, and female empowerment. However, only 19% of the companies disclosed information on their proportions of recycling or safely treated wastewater (SDG 6: Clean Water and Sanitation).

The disclosure of SDG 7 (Affordable and Clean Energy) revealed that, on average, 11 companies reported their percentages of renewable energy sources or increases in energy saved. A possible reason for the low disclosure is that SDG 7 is more related to energy and manufacturing companies, which constituted a very small share of the overall sample. Similar results are observed for SDG 8, as 11 companies disclosed information on their percentages of workers with permanent employment status. With regard to SDG 9 (Industry, Innovation, and Infrastructure), nearly half of the sampled companies provided comprehensive disclosures on their activities and initiatives to facilitate the participation of small-scale enterprises as integral partners in their operational structures.

Moreover, the results for SDG 10 (Reducing Inequalities) show that 15 companies, on average, highlighted equal opportunities for all employees, and some of these companies also disclosed statistics for employees with disabilities and diverse backgrounds. However, the sampled companies were less concerned with SDG 11 (Sustainable Cities and Communities), as only 22% disclosed their efforts to provide safe and sustainable transportation for employees. However, more disclosures were observed for SDG 12 (Responsible Consumption and Production), as 41% of the companies reported their recycled waste percentages. The results for SDG 13 (Climate Action) show that nine companies, on average, detailed their targets to manage climate-related risks and their target performances.

Of the 37 companies, just 14% were concerned with addressing future risks associated with aquatic ecosystem depletion, which could be because SDG 14 has a more macroeconomic dimension on which companies may exert restricted impacts. Companies were a little more concerned with SDG 15 (Life on Land), as 19% reported their efforts to address the risk of terrestrial ecosystem resource depletion. A better performance was observed for SDG 16 (Peace, Justice, and Strong Institutions), as nine companies, on average, disclosed their activities to promote equity and fair business. The principles highlighted the most by the companies under SDG 16 were standards and guidelines for ethics, integrity, personal conduct, and anti-corruption. Finally, the results for SDG 17 show that 46% of the companies reported their investments in multi-stakeholder partnerships in their sustainability reports, and especially their partnerships with different governmental units and ministries.

In summary, the results for the SDGs with the business reporting indicators provide evidence that not all the SDGs were equally addressed by the sampled companies. Some SDGs were addressed more (SDGs 1, 3, 4, and 9), as these SDGs can be easily incorporated into business objectives, and companies can have a considerable impact on them. However, other SDGs (4, 14, and 15) were addressed much less, as they have a more macroeconomic dimension on which companies exert limited impacts.

6. Conclusions

In this study, we analyzed the SDG reporting practices of companies listed in Bahrain for the period 2019–2021, motivated by the country’s growing commitment to sustainable development and its unique position as a rapidly growing GCC country. In 2022, Bahrain made a major advancement by establishing the Ministry of Sustainable Development, which ensures the smooth integration and effective monitoring of the SDG initiatives across all sectors. Bahrain has also attempted to align its national plans and strategies with the SDGs, with a particular focus on environmental sustainability, economic diversification, and social welfare.

This study contributes to the literature related to SDG reporting in several ways. First, it extends prior studies evaluating SDG reporting in the Gulf region [11,12]. Second, by adopting more than one framework for the evaluation and analysis, this study provides more comprehensive results on the SDG reporting practices in Bahrain. Additionally, this study offers new insights into the role of accounting in the actualization of the SDGs.

The content analysis, based on the PwC (2016) and GRI (2016) frameworks, revealed moderate levels of SDG disclosure by Bahraini companies. However, the results provide evidence for a steady increase in the SDG disclosure levels from 2019 to 2021. Moreover, the results for the business reporting indicators for the SDGs demonstrate that not all the SDGs were equally addressed by the sampled companies. The SDGs that organizations can easily integrate into their business models were more frequently addressed (SDGs 1, 3, 4, and 9) than those of a macroeconomic nature.

This study has significant implications for business organizations, policymakers, and stakeholders. For business organizations, the results suggest that Bahraini companies need to enhance their sustainability reporting and recognize that comprehensive and transparent SDG reporting is a strategic tool for building trust with stakeholders. To achieve this, companies are expected to develop measurable KPIs that align with SDGs, integrate SDG initiatives into their core business models and to enhance communications with stakeholders on their SDG performance. Business organizations that improve their SDG reporting practices and incorporate the SDGs into their business models will gain a competitive advantage in a world increasingly focused on sustainable development. For policymakers, the results highlight the need for more robust regulations that mandate and standardize SDG reporting among all sectors. Mandatory SDG reporting guidelines with clear metrics and reporting frameworks might be implemented. Policymakers may also consider strengthening corporate governance frameworks to emphasize the importance of integrating SDGs into corporate strategy and corporate reporting. Furthermore, policymakers can lead a more strategic and integrated approach to sustainable development by fostering stronger partnerships between the government and private sector. Finally, this study underscores the growing importance of SDG reporting for stakeholders attempting to evaluate the environmental, social, and governance impacts of business organizations.

This study has a few limitations that can be addressed in future research. First, the analysis was conducted only for companies in Bahrain. Thus, the limited sample size and the country-specific characteristics may have influenced the results and may negatively affect their generalization. Future analysis could extend the analysis and provide cross-country comparisons, to present valuable insights into factors determining SDG reporting, a step that would enhance the generalizability of the findings. Moreover, future research could extend analysis by examining more recent SDG reporting practices in Bahrain. Another limitation in the study relates to sample composition, with higher proportion of financial sector firms. Hence, future research could employ stratified sampling to ensure alignment of sample’s composition with that of the population. In addition, the analysis focused on disclosures from companies’ annual reports. However, the analysis could be supplemented by in-depth interviews with managers and sustainability officers, which could reveal additional undisclosed SDG efforts and would shed light on the motivations and challenges associated with SDG reporting. Finally, the relationship between companies’ profitability and the SDG disclosure levels could by examined in future research. Such examination could establish potential causal relationships between financial performance and SDG reporting practices.