The Use of Visuals in Sustainability Reporting
Type
dissertation project
Start Date
2023
Keywords
sustainability reporting
multimodality
ESG-ratings
visual analyses
textual analyses
Description
This paper moves from report -level to micro-level analyses to examine how firms use individual
visual elements within sustainability disclosures, differentiating between photographs and
graphics. We employ deep -learning-based visual and textual analyses to 3,923 European
reports from 2013 to 2021. At the report level, we find that firms with stronger sustainability
performance use more graphics, but not more photographs. At the micro-level, we find
that sections with a stronger sustainability focus contain more graphical elements but fewer
photographs. Photographs in these sections are less congruent with their surrounding
narratives and use more green colors and salient designs. These patterns are amplified among
poor ESG performers, suggesting that photographs in sustainability reporting have a more
aesthetic role, whereas graphics serve a primarily content-oriented communicative function.
Consequences tests show that graphics, particularly when congruent, are associated with
fewer future ESG incidents and higher subsequent ESG ratings, whereas photographs exhibit
weaker or opposite associations. Across outcomes, visuals tend to be strategically positioned in
sustainability-dense disclosure passages that contain decision-relevant information, suggesting
a strategic placement. These findings underscore the informative relevance of multimodal
sustainability reporting.
visual elements within sustainability disclosures, differentiating between photographs and
graphics. We employ deep -learning-based visual and textual analyses to 3,923 European
reports from 2013 to 2021. At the report level, we find that firms with stronger sustainability
performance use more graphics, but not more photographs. At the micro-level, we find
that sections with a stronger sustainability focus contain more graphical elements but fewer
photographs. Photographs in these sections are less congruent with their surrounding
narratives and use more green colors and salient designs. These patterns are amplified among
poor ESG performers, suggesting that photographs in sustainability reporting have a more
aesthetic role, whereas graphics serve a primarily content-oriented communicative function.
Consequences tests show that graphics, particularly when congruent, are associated with
fewer future ESG incidents and higher subsequent ESG ratings, whereas photographs exhibit
weaker or opposite associations. Across outcomes, visuals tend to be strategically positioned in
sustainability-dense disclosure passages that contain decision-relevant information, suggesting
a strategic placement. These findings underscore the informative relevance of multimodal
sustainability reporting.
Leader contributor(s)
Wolter, Robin
Member contributor(s)
Topic(s)
sustainability reporting