Non-Financial Reporting in the Real Estate and Construction Sector in Germany: Competitive Advantage or "Window Dressing"?

The higher status of sustainability in society, growing legal obligations, and the increased interest of stakeholders have made it crucial for companies to report on their environmental, social and economic concerns in the form of non-financial reports. This dissertation examines the role of non-financial reporting in the German real estate and construction sector and analyses whether it serves as a source of competitive advantage or rather as a form of window dressing. To explore this question, a multi-criteria assessment framework was developed using ten evaluation criteria grounded in established sustainability research. Using this framework, 30 non-financial reports were systematically assessed to explore their potential to generate competitive advantages and to identify indications of symbolic or misleading ESG communication. The resulting scores were classified into four threshold-based categories to reveal patterns across the sample. Additionally, a distinction was made between capital market-oriented and non-capital market-oriented companies to analyse how structural and regulatory factors influence reporting quality. The findings reveal that capital market-oriented companies tend to score higher in both assessment dimensions, benefitting from structured reporting systems, compliance with international standards (e.g. GRI, EU Taxonomy), and access to greater resources. In contrast, non-capital market-oriented companies show more heterogeneity, with some demonstrating innovative approaches but many exhibiting transparency gaps, limited standardisation, and superficial ESG claims. A notable correlation was found between strategic ESG integration and lower risk of window dressing, while selective disclosure and vague statements were especially prevalent among companies with weak reporting practices. The dissertation concludes by reflecting on the conditions under which NFR can serve as a strategic instrument for market positioning and credibility. It also offers an outlook on future regulatory developments and the potential of digital technologies to improve the quality, comparability, and reliability of NFR.