A Review of Sustainability-Driven Corporate Reporting: Best Practices and Challenges in Palm Oil Sector Financial Reporting Disclosures

This research examines the development of corporate sustainability reporting in the palm oil sector amidst increasing demands for ESG transparency from investors, regulators, and the global community. The study aims to identify best practices and key challenges in the disclosure of palm oil company sustainability. The method used is a Systematic Literature Review (SLR) of scientific articles from the 2020–2025 period, analyzed thematically. The study's findings indicate that best practices include the adoption of global standards such as GRI and TCFD, integration of ESG indicators in financial reports, enhanced supply chain transparency, stakeholder engagement, and the use of digital technology for data verification. However, the sector still faces various challenges, such as disharmony in reporting standards, data limitations especially from smallholders, the cost of independent verification, and the risk of greenwashing. This study underscores the need for standard harmonization, strengthening industry players' capacity, and policy support to make sustainability reporting more credible and consistent in the global palm oil industry governance.