Sustainability Disclosure in the Leather Industry: A Content Analysis of Selected Sustainability Reports

Content: In today’s business environment, organisations are increasingly reporting their sustainability credentials through different channels. However, in a traditional industry with a complex supply chain as leather, many companies do not publicly disclose details of their sustainability activities, while a considerable number of companies report on the environmental sustainability aspect alone. Hence, this study identifies good practices of sustainability reporting, discussing the sustainability information extracted from the reports of a selected number of companies in the leather industry. A thematic content analysis was used to extract sustainability information from either the website, annual report, sustainability report or corporate social responsibility report of six leather companies. A review of existing literature assisted in categorising different practices under the three sustainability dimensions while a highlight of patterns among practices followed. The results show that the companies are observing a good practice of either dedicating a section of their website to revealing their sustainability activities or utilising their sustainability reports. Additionally, these companies follow a good practice of reporting their activities based on the economic, social and environmental sustainability dimensions, rather than focusing on just one of the aspects. Amongst the six companies, energy efficiency and reduction in greenhouse gases emission were the most occurring environmental sustainability practices. On the other hand, health and safety occurred as the dominant social sustainability practice of the leather industry, while economic sustainability practices have not been well defined, providing an opportunity for future research. Conclusively, the study provides a useful resource for managers and companies in the leather industry to learn from brands that have been embarking on sustainability efforts and assist them in getting a grasp of the concept, in readiness for strategy formulation, implementation and reporting. This study provides knowledge of the sustainability criteria to be met by small, medium sized and large leather supply chain actors on their sustainability journey. Take-Away: 1. The companies are observing a good practice of either dedicating a section of their website to revealing their sustainability activities or utilising their sustainability reports. 2. The companies also follow a good practice of reporting their activities based on the economic, social and environmental sustainability dimensions, rather than focusing on just one of the aspects. 3. Energy efficiency and reduction in greenhouse gases emission were the most popular environmental sustainability practices, health and safety was the dominant social sustainability practice while economic sustainability practices have not been well defined