Resisting Sustainability Reporting Regulation in Europe: Stakeholders’ Barriers to the Adoption of the Corporate Sustainability Reporting Directive

Purpose – This research explores barriers associated with the implementation of sustainability reporting regulation (SRR) in Europe, focusing on stakeholders’ resistance to transitioning from Directive 2014/95/EU (the NFRD) to Directive 2022/2464/EU (the CSRD). Design/methodology/approach – SRR stakeholders’ feedback collected during a public consultation conducted by the European Commission was qualitatively and quantitatively analysed employing qualitative content analysis, iterating multiple regression models, and relying on the normativity concept and Innovation Resistance Theory (IRT). Findings – The results revealed both psychological and functional barriers that negatively affect stakeholders’ agreement to transition from the NFRD to the CSRD and might result in sub-optimal normative outcomes of the CSRD’s regulatory innovations. Originality – This study introduces IRT as a framework to investigate SRR normativity and identifies psychological and functional barriers that might negatively affect the SRR regulatory success. The results provide a comprehensive understanding of how such barriers impact the early stages of normativity. Research limitations/implications – This research provides important insights for policymakers regarding the ways to address stakeholders’ resistance to SRR innovations. Arising from the legislation’s recent introduction, the currently limited empirical evidence on the implementation outcomes warrants further research on the long-term impact of these barriers. Practical implications – This study offers meaningful practical insights for policymakers to improve stakeholders’ acceptance of SRR, including but not limited to aligning new regulations with existing practices, offering training and financial incentives, and highlighting tangible benefits to overcome resistance and perceived value gaps.