Converging standards, diverging outcomes? An empirical analysis of interoperability in sustainability reporting

Purpose – This article investigates the evolving sustainability reporting landscape in the European Union (EU) following the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). It explores the degree of interoperability – that is, the effective alignment between the ESRS and major international frameworks, including the Global Reporting Initiative (GRI) and the International SustainabilityReporting Standards(IFRS) – and evaluates how companiesrespond in practice. Design/methodology/approach – The study conducts a comparative analysis of energy companies operating within the EU. The empirical analysis is supported by the construction of an interoperability grid and the subsequent measurement of interoperability indicators. Findings – The analysis reveals strong alignment in disclosures between companies reporting under the ESRS and those reporting under the GRI, supporting the practical effectiveness of interoperability initiatives. In contrast, IFRS-aligned firms exhibit significantly lower and more heterogeneous disclosure levels, particularly in governance, highlighting limitations of investor-centric reporting frameworks in achieving comprehensive sustainability transparency. Research limitations/implications – The findings are based on a cross-sectional sample from a single EU sector, limiting their generalisability. Nevertheless, the results inform policymakers and firms by evidencing practical interoperability between the ESRS and GRI while highlighting gaps in IFRS-aligned disclosures. Practical implications – By empirically examining interoperability in practice, this study provides evidencebased insights for policymakers, standard setters, and firms, supporting alignment strategies and informing the implementation of sustainability reporting frameworks within the evolving EU regulatory landscape. Social implications – Achieving a truly harmonised reporting environment across the EU would strengthen stakeholder trust, enhance the comparability of disclosures, and support effective and sustainable economic development. Originality/value – Thisstudy provides empirical evidence on interoperability acrossthe ESRS, GRI, and IFRS frameworks, offering one of the first disclosure-based assessments of cross-framework alignment in the early implementation phase of the CSRD.