Enhancing Sustainability Reporting in State-Owned Enterprises: An Action Research Approach

Abstract

This article introduces a sustainability reporting tool tailored for State-Owned Enterprises (SOEs). This multi-item instrument enables the reporting of social, economic and environmental aspects within SOEs’ sustainability reports. Developed through an action research approach, the most pertinent aspects of sustainability reporting have been identified through a participatory process involving interviews, a workshop, and web content analysis. Consequently, the selected indicators not only align with major reporting guidelines but also respond to stakeholders’ transparency demands. The empirical context is Andalusia, where all 399 registered SOEs were analysed, and stakeholder engagement activities were conducted. The tool comprises a set of qualitative and quantitative indicators organised into 13 dimensions, agreed upon by academic researchers, practitioners, and a broad range of stakeholders. Additionally, a complementary industry-specific module has been developed for water utilities. As a public service with significant social and environmental impact, water management requires enhanced accountability and stronger stakeholder engagement. The tool supports the monitoring of SOEs’ progress towards greater sustainability and may serve as a reference framework for report producers, policymakers and standard-setting bodies.