Leveraging Social Sustainability Disclosure in Financial Institutions: A ClustOfVar Approach to Managerial Decision-Making

This study investigates how European financial institutions disclose social sustainability information by analyzing the structure and intensity of social reporting within the Global Reporting Initiative (GRI) framework. Drawing on a sample of 68 sustainability reports from 2020, covering listed banks and insurance companies, the research adopts a quali-quantitative approach. In the first phase, a content analysis was conducted using MAXQDA Analytics Pro, enabling the extraction and coding of textual elements associated with 19 GRI social indicators. Disclosure data were systematically identified and transformed into standardized variables through a structured keyword-based methodology. In the second phase, these variables were analyzed using the ClustOfVar algorithm, which allows for the clustering of mixed-type data. The results identify six robust and interpretable clusters representing key dimensions of social disclosure: employment and diversity; occupational health and safety; training and human capital development; supplier social assessment; stakeholder and community engagement; and customer data protection. A composite disclosure score was computed for each institution across the clusters, enabling detailed and comparative profiling. The empirical evidence highlights a marked heterogeneity in reporting practices across institutions. While some organizations adopt a comprehensive and multi-dimensional disclosure strategy, others focus on selected social aspects, suggesting diverse strategic orientations and stakeholder priorities. The findings also reveal thematic areas that are systematically underreported, such as human rights due diligence and supply chain social risks. This study contributes to the literature by providing a replicable quali-quantitative framework for analyzing social sustainability disclosure. It offers valuable insights for standard setters, financial analysts, and stakeholders aiming to assess the transparency and strategic coherence of social reporting in the financial sector.