How do European Union electric utilities contribute to the Sustainable Development Goals? Empirical insights on reporting and management control practices

The 2030 Agenda for Sustainable Development emphasizes the need for collective action to ensure economic prosperity, environmental protection, and social cohesion for the benefit of present and future generations. As key players in the transition to a sustainable economy, electric utilities face pressure to report on their contribution to the SDGs and to implement appropriate management control practices to ensure progress. This study investigates reporting on the SDGs and the management control practices adopted by 28 large electric utilities within the European Union. The disclosure index reveals that contributions to the SDGs are reported, albeit to varying degrees depending on the goal. In terms of management control practices, content analysis shows that administrative controls are used particularly extensively, but cultural controls, planning, cybernetic, and reward and compensation systems are also employed, suggesting that electric utilities are moving toward a holistic management control approach. The results support academic debate and offer practical insights in light of the changes brought about by the Corporate Sustainability Reporting Directive, the European Sustainability Reporting Standards and the recent Omnibus package.