Позитивные изменения. Том 3, № 4 (2023). Positive changes. Volume 3, Issue 4(2023)

In addition, sustainability committee composition and diversity can significantly impact the sustainability reporting quality in an organization. Research has shown that having a diverse and well-balanced committee can lead to more comprehensive and transparent reporting (Adams et al., 2016; Orlitzky et al., 2017). Having a reasonable mix of gender or people with diverse backgrounds and skills in a sustainability committee enables a harmonious and/or collective efforts towards achieving sustainable growth and development. Sustainability is a collective objective and not an individual thing.

A varied group may bring a variety of viewpoints and experiences to the table, which can result in more original and imaginative solutions to sustainability-related problems. Furthermore, a diverse committee can also help to address the interests of different stakeholders (Deegan et al., 2011). For instance, having women on the committee can ensure that gender-related issues are considered in sustainability reporting (Adams et al., 2016). Moreover, including representatives from different departments within the organization, such as finance and human resources, can ensure that sustainability reporting is integrated into the overall business strategy (Bertels et al., 2013). Therefore, the study question is: how much does diversity on sustainability committees enhance the standard of banks’ sustainability reporting in South Africa and Nigeria? To obtain empirical evidence to address this question the following null hypothesis is formulated:

H0(3): Sustainability committee diversity has no significant effect on the sustainability reporting quality of banks in Nigeria and South Africa.

Furthermore, regularity with which sustainability committee meetings are held tend to solicit a substantial effect on sustainability reporting quality. According to a study conducted by the Global Reporting Initiative (GRI), organizations that display thoroughness and have sustainability committee meetings on a regular basis produce higher quality sustainability reports (Global Reporting Initiative, 2015). Consistency in holding regular meetings enables the committee to deliberate on new initiatives or improve on existing ones to drive forward the sustainable development agenda; etc.

The GRI recommends that companies hold sustainability committee meetings at least once per quarter to ensure regular review of sustainability performance and progress toward sustainability goals (Global Reporting Initiative, 2015). However, some companies may choose to hold meetings more or less frequently depending on their specific needs and circumstances (Sustainalytics, 2021).

Therefore, the research question is: to what degree do regular and well-structured sustainability committee meetings contribute to banks in Nigeria and South Africa producing high-quality sustainability reports that accurately reflect their sustainability performance and progress? This question is addressed by testing the null hypothesis:

H0(4): Sustainability committee’s diligence has no significant effect on the sustainability reporting quality of banks in Nigeria and South Africa.

Furthermore, it is believed that organizations with a sustainability committee in place are more likely to report on a broader range of sustainability issues and to disclose more detailed information than those without such a committee (KPMG, 2020). However, in the event of voluntary establishment of such a committee, its members are more likely to be negligent on sustainability issues, thereby making sustainability reports to be less reliable.

Thus, the research question is as follows: do the attributes of mandatorily established sustainability committees of banks in South Africa outperform those of voluntarily adopted sustainability committees of banks in Nigeria in terms of improving the quality of sustainability reports? The following null hypothesis is tested in order to determine the answer to the question:

H0(5): The true difference between the potential of sustainability committee attributes of banks in Nigeria and South Africa in inducing sustainability reporting quality is zero. The “potential of characteristics” here means the likelihood that the attributes of the ESG committees in Nigeria and South Africa influence the quality of their sustainability reporting; and whether the influence varies between the two countries.