Applying GRI Sustainability Reporting in the Water Sector: Evidences from an Italian Company

Abstract

Sustainability reporting is considered the most applicable and reliable tool for disclosing financial and non-financial information to stakeholders and a means for strengthening company credibility. The Global Reporting Initiative (GRI) is the most common standard followed to implement and to develop sustainability reporting. Nevertheless, a few studies have focused on the real adoptability of the standard. The aim of the present study is to illustrate how GRI indicators could be applied and interpreted by managers of a water company to implement sustainability reporting. A single case study is developed to identify which factors could affect the standardized implementation of the G4 guidelines by a water utility company. The research was conducted in an Italian medium-sized enterprise, an entirely publicly owned joint-stock company under the in-house providing rules. Evidence from the case study was gathered through direct observation as well as semi-structured interviews and focus groups with the human resources responsible for the data collection. The research highlights that the process generated an internal validation of the practices carried out by the managers to achieve sustainable development. The case study presented shows that GRI Guidelines adoption is left to interpretation: certain practices and recommendations contained in the G4 implementation manual are, in fact, operationalized within the organization in consideration of the company"s activities and governance. The illustration of the case study may guide practitioners in the GRI implementation process in all sectors, especially in public utilities.

Stakeholder interactions as sources for organisational learning: insights from the water sector

“…As stated by Guerrini et al (2013), in the water sector, there is an information asymmetry between the regulatory authority and regulated utilities that calls for the development of a transparent reporting system to disclose company performance. Accordingly, the need to communicate sustainable behaviours concerning resource management is stronger than in other sectors (D'Andrea, 2017;Larrinaga-Gonzélez and Pérez-Chamorro, 2008). Nevertheless, in the literature we also find cases in which sustainability reporting in the water sector has decreased over the years (Vinnari and Laine, 2013).…”

“…An often-underestimated issue with respect to the role of stakeholders is power (Dahl, 1957; Roome and Wijen, 2005). Stakeholder influence occurs when a stakeholder can influence the behaviour of an organisation, where influence is a materialisation of power (Mintzberg, 1983).…”

A New Framework for Assessing the Sustainability Reporting Disclosure of Water Utilities

“…The scoring and benchmarking systems and the content analysis techniques obtain quantitative information from the sustainability reports of water utilities regarding sustainability issues aiming to measure the kind, quality, and quantity of the sustainability disclosure, while interviews and surveys focus on the motivations to report [8][9][10][11]. However, a basic problem in this field is the limited number of studies which focus on water utilities accountability and legitimacy strategy for sustainability issues [12,13].…”