Ippendorf, NikoVillegas, Erick BeharEliana Iguaran TrujilloBerlin International University of Applied Sciences2024-01-152025-12-022025-12-022023https://repository.berlin-international.de/handle/123456789/1074AI-GENERATED ABSTRACT: Abstract: Recently, a growing focus has been on how businesses manage and communicate their non-financial information (NFI), referring to data that is not directly linked to a company's financial performance or statements and typically encompasses Environmental, Social, and Corporate Governance (ESG) information. Such data assists stakeholders in comprehending the key aspects of value creation beyond the company's financial statements while also assessing its sustainability and social impact. This thesis thoroughly examines the disclosure of Non-Financial Information (NFI) related to sustainability by two Colombian companies in the food and beverage industry, Grupo Nutresa S.A. and Colombina S.A., compared to Nestle S.A., the world's largest food company by revenue. Our analysis utilises an Embedded Multiple- Case Study approach to scrutinise sustainability reports, materiality analysis, stakeholder engagement strategies, the commitment to sustainable development goals (SDGs), and ESG scores, among other internal and external factors. The findings of this study reveal significant variations in the disclosure of NFI practices among Colombian companies, as well as in comparison to Nestle S.A. These differences could be attributed to factors such as the qualitative nature of most indicators, variations in the indicators used, and the wide variety of frameworks and standards available and voluntarily implemented, reinforcing the lack of standardisation and the difficulty in comparing companies' reports. This research will enhance comprehension of these inherent comparability issues and assist in improving ways of disclosing and reporting this information in the future. The study also shows that disclosing non-financial information (NFI) can provide several competitive advantages for companies. By being transparent in reporting, companies can improve their reputation, gain the trust of stakeholders, attract customers who prioritise social and environmental concerns and access favourable financing options. Additionally, it can foster innovation, enhance risk management, and improve operational efficiency, leading to long-term financial gains. Companies must develop comprehensive sustainability strategies that align with their business goals and integrate sustainability into their core operations to take full advantage of these benefits. Government regulations can also help standardise NFI disclosure practices, ensuring transparency and comparability within the industry. Keywords: non-financial information, NFI disclosure, ESG, sustainability, Grupo Nutresa S.A., Colombina S.A., Nestle S.A., sustainable development goals, stakeholder engagement, reporting standardisationMACHINE-GENERATED CONTENTS NOTE: Table of Contents thesis Declaration Page ........................................................................................ Ii abstract ................................................................................................................ Iii abbreviations List .................................................................................................. Iv 1 Introduction ........................................................................................................ 1 1.1 Research Question ....................................................................................... 3 1.2 Structure of the Thesis ................................................................................. 3 2 Literature Review ................................................................................................. 4 2.1 Corporate Non-financial Reporting ............................................................. 4 2.2 Sustainability Reports Comparability ........................................................... 4 2.3 Stakeholder Theory ..................................................................................... 5 2.4 Regulations Around the Disclosure of Non-financial Information ................. 6 2.4.1 Swiss Non-financial Reporting Obligations .......................................... 6 2.4.2 Colombian Non-financial Reporting Obligations ................................... 7 2.5 Sustainability Frameworks ............................................................................ 8 2.5.1 the Global Reporting Initiative (gri) .................................................... 8 2.5.2 Climate Disclosure Standards Board (cdsb) ........................................ 9 2.5.3 International Integrated Reporting Council (iirc) Framework ............... 9 2.5.4 the Sustainability Accounting Standards Board (sasb) ...................... 10 2.5.5 Frameworks Comparison ..................................................................... 10 2.6 the United Nations Sustainable Development Goals (sdgs) ...................... 12 3 Methodology ...................................................................................................... 14 3.1 Research Method ....................................................................................... 14 3.2 Data Collection ........................................................................................... 15 3.3 Choice of Industry and Companies ............................................................. 16 3.3.1 Food and Beverage Industry in Colombia .............................................. 17 3.3.2 Companies ........................................................................................ 17 3.3.2.1 Grupo Nutresa S.a. (overview) .................................................. 17 3.3.2.2 Colombina S.a. (overview) ....................................................... 20 3.3.2.3 Nestlé S.a. (overview) .............................................................. 22 4 Industry and Companies Analysis ....................................................................... 24 4.1 Food Industry External Analysis - Industry Trend Analysis .......................... 24 4.2 Grupo Nutresa S.a. Case Study .................................................................. 26 4.2.1 Sustainability Reports Analysis ........................................................... 26 4.2.2 Internal Analysis ................................................................................ 32 4.3 Colombina S.a. Case Study ........................................................................ 34 4.3.1 Sustainability Reports Analysis ........................................................... 34 4.3.2 Internal Analysis ................................................................................ 39 4.4 Nestlé S.a. Case Study .............................................................................. 41 4.4.1 Sustainability Reports Analysis ........................................................... 41 4.4.2 Internal Analysis ................................................................................ 49 5 Companies Sustainability Performance Analysis ................................................ 51 5.1 Sustainability Ratings Performance Comparison .......................................... 51 5.1.1 the S&p Global Esg Score ................................................................. 51 5.1.2 Sustainalytics Esg Score ................................................................. 55 5.1.3 Refinitiv Esg Score .......................................................................... 56 5.1.4 Morgan Stanley Capital International (msci) Esg Score .................... 58 5.2 Stakeholders Materiality Analysis ............................................................... 61 5.2.1 Companies Materiality Analysis .......................................................... 63 5.2.2 Stakeholders Engagement ................................................................. 65 6 Main Findings and Analysis ................................................................................. 69 6.1 Comparison Between Companies' Non-financial Information Disclosure .... 69 6.2 How Sustainability Influences Value Creation and Competitive Advantages for Businesses ............................................................................................................. 72 7 Conclusion .......................................................................................................... 79 7.1 Limitations and Future Research ................................................................. 80 8 References .......................................................................................................... 84 appendices ............................................................................................................ 93 Appendix a - the Invitation Email for an Expert Questionnaire .......................... 93 Appendix B - Expert Questionnaire (questions and Answers) ............................. 94engColombina SEsgGrupo Nutresa SNestle SNfi DisclosureReporting StandardisationSustainabilitySustainable Development GoalsNon-Financial InformationThesis