Assessing sustainability reporting practice in accordance with the global reporting initiative (G4) towards achieving sustainable development goals using artificial intelligence
| Mohammad Main Uddin Institute of Bangladesh Studies (IBS) University of Rajshahi, and Department of Accounting, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh |
Md. Alamgir Hossain Department of Management Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, Bangladesh |
| Saiful Hoque Department of Mass Communication and Journalism, University of Dhaka, Bangladesh |
A.S.M Asaduzzaman Department of Mass Communication and Journalism University of Dhaka, Bangladesh |
| Mahmudul Hasan School of IT, Deakin University, Melbourne Victoria, Australia |
DOI: https://doi.org/10.63817/jmagp.05.2024.002
Received June May 12, 2024
Revised September 14, 2024
October 27, 2024
Accepted November 1, 2024
Abstract
Purpose/Objective – This study examines the sustainability reporting (SR) practices of Bangladeshi banks in order to achieve Sustainable Development Goals (SDGs) using artificial intelligence.
Methodology/Approach – The study developed the ‘Sustainability Reporting Index as per Global Reporting Initiative-G4 (SRIGRIG4)’ based on existing literature and international initiatives. Similarly, to cluster the companies based on cross-sectional performance and to determine the impact of ownership structure on sustainability reporting practice, this study used a prominent and well-used machine learning clustering algorithm, K-Means clustering. This study conducted a coded content analysis of corporate annual reports from 61 banks in Bangladesh, covering the period from 2017-2018 to 2021-2022. We have comprehensively evaluated the corporate annual reports of the
banks by comparing them with the pre-developed ‘SRIGRIG4’, which comprises seven categories and fifty-three indexed items.
Results/Findings – The results indicate that banks are not concerned about the application of the Global Reporting Initiative (GRI) (G4), and the overall progress in implementing SRIGRI ranges from 0 to 62%. Most of the banks intended to disclose a general disclosure rather than economic, environmental, social, human rights, product responsibility, labor practices, decent work, and society disclosures.
Novelty/Originality – This study adds to the existing literature by incorporating artificial intelligence into clustering sustainability reporting practices. At the same time, this study provided a couple of theoretical and managerial contributions.
Implications – The study offered policy recommendations aimed at advancing banks’ sustainability reporting practices in developing countries to meet the SDGs. This was achieved by highlighting the situation and its correlation with the firm’s financial performance. Ultimately, this led to the development of a policy that would help both academia and practitioners adapt to climate change, ensuring a sustainable future and existence. Overall, the results of this study provide insights into how banks practice sustainability reporting to achieve SDGs in time.
Keywords: Sustainability reporting, SDGs, GRI, coastal state, banks.
Paper type: Research paper
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