Purpose: To explore how the adoption of SDGs at the firm level influences sustainability reporting assurance practices in Scandinavian countries, with a specific focus on micro-level data.

Methodology: In this thesis, we analyze a panel dataset of 84 publicly traded companies from Denmark, Finland, Norway, and Sweden covering the years 2021 to 2023, for a total of 252 firm-year observations. A Pooled OLS regression model with robust standard errors clustered at the firm level was applied. Fixed effects of sector, country, and year are included to account for structural differences and time-varying trends.

Findings: The findings indicate integration of SDGs into corporate governance is negatively associated with obtaining external assurance, suggesting firms might be referencing SDGs more for their symbolic value than substantively. Firm size has a positive and significant effect and leverage is negatively associated with assurance.

Originality: This thesis addresses the issue of SDGs adoption both substantively and symbolically. It provides new evidence from the Scandinavian region—considered a sophisticated region regarding ESG compliance—which demonstrates that alignment with SDGs does not necessarily result in greater accountability through assurance. This research adds more complexity to the discussion regarding genuine SDG commitment and symbolic practices.

Research limitations: The analysis is constrained by a brief three-year timeframe and focus on the four Scandinavian countries as a single geographic unit, which can limit broader applicability. In addition, the depth and quality of assurance is overlooked as the study employs a binary measure.

Practical implications: This thesis indicates that policymakers and regulators may want to establish mandatory assurance frameworks to ensure that the verified SDGs disclosures are reliable and auditable.

Social implications: The thesis demonstrates that the various stakeholders such as institutional investors, public policymakers, and the general public need to examine SDG claims critically and demand that corporations implement credible accountability frameworks to guard against mere symbolic adoption.