Materiality, Non-Financial Reporting and SDGs Integration: A Critical Analysis of Corporate Practices from the PSI Index

Abstract

This study analyzes how 16 companies listed on the Portuguese PSI Index integrate material sustainability issues and the Sustainable Development Goals (SDGs) into corporate strategies and non-financial reports (2021–2024). The PSI Index provides a distinctive empirical setting due to its small, concentrated capital market and strong exposure to European sustainability regulation. Using a longitudinal qualitative content analysis and an adapted PwC framework, the article examines the nexus between materiality assessments, SDG prioritization, and strategic integration. Results reveal highly heterogeneous reporting practices. Energy, utilities, forestry, and materials companies consistently translate material issues into priority SDGs backed by KPIs and measurable targets. Conversely, retail, services, finance, and construction firms remain mostly descriptive. The study contributes by providing longitudinal evidence in the pre-CSRD transition, linking materiality maturity with SDG reporting quality, and offering a replicable coding approach to assess strategic integration. Limitations include reliance on published reports and sectoral diversity.