Decarbonization of waste management practices and GHG accounting for energy transition: evidence from European electricity corporations’ reporting

Abstract

This study advances the understanding about the waste management practices adopted by the electricity sector for meeting the energy transition. Specifically, through the institutional, stakeholder, and legitimacy theory lens, it investigates the decarbonization practices in 11 major electricity producers in Europe trying to understand their sincere concern for enhanced performance and transparency. This study analyzes the content of non-financial disclosures shown by 90 reports, that is 64 sustainability reporting and 26 integrated reporting published between 2015 and 2022. Hence, this study seeks to clarify the linkages between waste management for emissions reduction, GHG accounting and sustainability reports through which the corporations seek legitimacy from stakeholders. The results highlight the commitment of electricity corporations for energy transition using green technologies and renewable energy sources to decarbonize the waste practices. However, they underline the absence of quantitative evidence in the SR for the evaluation of initiatives impact and the reduction of GHG emissions. To the best of our knowledge, this is the first study that conceptualizes the linkages between waste decarbonization for energy transition and the accounting systems i.e. GHG accounting and reporting in the electricity sector towards a cleaner production.

Sustainability Reporting and Market Uncertainty: The Moderating Effect of Carbon Disclosure

“…Some ESG disclosures may be more specific and reliable than others, providing more insights into the firm's environmental impact and risk management. One such type of ESG disclosure is carbon disclosure, which is the voluntary reporting of greenhouse gas emissions by firms [21,22]. We posit that carbon disclosure acts as a focal point in our integrative model, serving as a litmus test for the firm's overall commitment to sustainability.…”

“…We have chosen carbon disclosure as a moderator because it is an important and relevant type of ESG disclosure that can provide more specific and reliable information about the firm's environmental impact and risk management [22]. Carbon disclosure, the voluntary reporting of greenhouse gas emissions by firms, helps them measure and manage their environmental impact and climate change risks and a cleaner production [21]. As investors, regulators, and other stakeholders demand more transparency and accountability from firms on their carbon footprint and performance, carbon disclosure has become more important and prevalent in recent years [23].…”