Materiality in integrated and sustainability reporting: A paradigm shift?

This paper investigates the implementation of integrated reporting (IR) by Generali, one of the most important listed companies in Italy. The research questions we aim at answering are the following: Is the IR approach to materiality inherently different from the sustainability reporting (SR) approach? Does IR lead to the identification of different material topics than does SR? On the one hand, institutional theory suggests that IR and SR material topics are going to be significantly different because IR is mainly driven by a market logic, whereas SR is inspired by a stakeholder logic. On the other hand, organizational change theory predicts there will be some resistance to change by the organization, therefore leading to IR and SR topics being similar. In order to answer our research questions, we implement two empirical analyses. First, we propose and develop an innovative methodological approach on the basis of content analysis, which allows measuring the materiality of different issues under the IR approach. Second, we rely on evidence obtained through interviews, which suggests that IR and SR approaches to materiality are inherently different.