Strategic responses to mandatory sustainability disclosure

: adoption drivers and strategic impacts of the CSRD in the EU materials sector

Abstract

The EU has responded decisively to sustainability challenges, recently launching the Corporate Sustainability Reporting Directive (CSRD). This thesis examines the impact of such regulations on corporations, focusing on the materials sector, as it is particularly exposed to sustainability issues. The research has three main objectives: (1) to identify internal and external drivers influencing how EU-listed materials companies adopt the CSRD, (2) to analyze challenges and strategic benefits associated with its implementation, and (3) to assess how mandatory sustainability disclosure affects corporate strategy and decision-making within the broader sustainability context. The analysis is based on institutional theory and the resource-based view, which provide a theoretical foundation for understanding external and internal influences, respectively. In addition, it is informed by recent academic literature on the effects of sustainability reporting. Empirical findings are obtained by a qualitative analysis of first-wave companies subject to CSRD requirements. The interviews reveal the central role of institutional pressure, with regulation, investor expectations, and customer demands identified as the primary drivers. The results also point to implementation challenges, the role of geopolitical factors as influencing drivers, and perceived strategic benefits from a business perspective. While the regulation encourages deeper sustainability integration, its impact on corporate strategy remains limited. Overall, this work reveals both the opportunities and tensions associated with CSRD implementation, which companies must strategically navigate. The research contributes to ongoing debates on mandatory sustainability reporting and provides early-stage practical and theoretical implications. Additionally, it outlines avenues for future research in the evolving field of sustainability disclosure.

Date of Award	8 Jul 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa Serpa Pinto (Supervisor)