ESG NARRATIVES IN MANUFACTURING INDUSTRY - A Study of ESG Reporting in Swedish Manufacturing Companies Over Time (2010-2023)

Abstract

The purpose of this study is to investigate how Swedish manufacturing companies such as ABB, Atlas Copco, Sandvik, SKF, and Volvo Group have reported their Environmental, Social, and Governance (ESG) issues between 2010 and 2023. Based on a thematic analysis of NVivo data, sustainability has evolved over time from basic compliance to proactive implementation. ESG reporting practices have been influenced by key regulatory frameworks, such as the EU Non-Financial Reporting Directive (NFRD), the Paris Agreement, and the Sustainable Development Goals (SDGs). Companies' sustainability narratives have been further shaped by the TCFD's recommendations and the EU's Circular Economy Action Plan. Standardized ESG disclosures are encouraged by recent regulations such as the EU's Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD). According to our analysis and discussion, detailed sustainability reports, press releases, and stakeholder meetings have been essential tools for these companies to ensure continuous support and build trust. By sharing progress and challenges openly, transparency and accountability can be increased, along with discursive legitimacy, which may align with global standards. According to the study, these companies show a prudent commitment to sustainability, but the actual impact of their ESG initiatives needs to be critically assessed. It is important to measure the tangible results of these strategies to distinguish substantive sustainability efforts from superficial enhancements to corporate image, in order to improve corporate governance through the use of ESG reporting frameworks.