Disclosure standards and communication norms: evidence of voluntary sustainability standards as a coordinating device for capital markets

Khrystyna Bochkay, Jeffrey Hales, George Serafeim

Review of Accounting Studies · 2025 · Volume 30 · Issue 3

Abstract

We examine how the development ofvoluntarysustainability standards has affected the nature of information covered in earnings calls. Using industry-specific dictionaries of sustainability terms contained in the disclosure standards developed by the Sustainability Accounting Standards Board (SASB), we find an increase in coverage of sustainability topics identified as relevant to investors in SASB standards, particularly for companies that had little or no coverage of sustainability issues historically. This trend begins around the time when SASB released aprovisionalstandard for a given company’s industry and continues in the years afterward. We also find a stronger effect of SASB standards on conference call content for companies operating in industries with greater ex ante uncertainty about which sustainability topics are more likely to be financially material. Overall, our paper provides timely evidence as jurisdictions around the world consider whether to support sustainability reporting in their capital markets and, if so, how.

Keywords

Voluntary disclosure, Sustainability reporting standards, Earnings conference calls, Environmental, social, and governance (ESG) issues

Enable JavaScript for citation tools and additional paper interactions.