Environmental Reporting in Pakistan’s Oil and Gas Industry

Abstract

This paper investigates to what extent Oil and Gas (O&G) companies in Pakistan report on environmental protection activities. Using a content analysis approach, environmental reporting (ER) in 13 companies’ annual reports and websites are investigated over a five year period (2010-2014) following the guidelines issued by Securities Exchange Commission of Pakistan (SECP). Results reveal that the majority of the companies were found to have a low level of ER. However, since the introduction of SECP’s voluntary guidelines, the level of ER increased during the sample study period. Companies that issued a stand-alone report were found to have higher levels of disclosure on their environmental protection practices. This study recommends that management engage with internal and external stakeholders with their environmental management practices. The results may also be beneficial to the government as they provide reporting guidance and stock exchange regulations regarding the obligatory dissemination of environment-related information.

Promoting sustainability through corporate social responsibility implementation in the manufacturing industry: An empirical analysis of barriers using the ISM‐MICMAC approach

“…In 2013, the Pakistan Securities and Exchange Commission (SECP) developed several voluntary CSR policies to increase public interest, prevent harmful practices, and ensure responsible business conduct (Javaid Lone, Ali, & Khan, ; Pakistan Centre for Philanthropy (PCP), ). For Pakistani manufacturing companies and government agencies, CSR activities are very important for the following reasons: Implementation of environmental policies (Ali et al, ; Policy and Regulations on SWM‐Pakistan, ); economic benefits; green marketing improvement; social–environmental benefits (M. Khan & Hassan, ). Further, CSR implementation in the manufacturing sector can also boost companies’ operational performance and profitability (Awan et al, ; Kalyar, Rafi, & Kalyar, ).…”

Sustainability Reporting Practices in the Energy Sector of Bangladesh

“…Of the commonly discussed internal drivers of sustainability reporting, there are company sizes, financial, social, and/or environmental performance, and ownership structure of the company. Company sizes are commonly proxied by total assets, company turnover, amount of annual sales, number of employees, and market capitalization (Dissanayake et al, 2019;Dienes et al, 2016;Fuadah et al, 2019;Khan and Hassan, 2019;Mudiyanselage, 2018;Orazalin and Mahmood, 2018). Larger companies face greater stakeholder assessment because of being more visible to the public than smaller companies.…”

“…Larger companies face greater stakeholder assessment because of being more visible to the public than smaller companies. As a result, anything larger companies do also have more impact on the industry (Dissanayake et al, 2019;Dienes et al, 2016;Fuadah et al, 2019;Khan and Hassan, 2019;Mudiyanselage, 2018). Moreover, from disclosing sustainability related information bigger companies are benefitted more than the cost they have to incur.…”

“…Moreover, from disclosing sustainability related information bigger companies are benefitted more than the cost they have to incur. Whereas, in case of smaller companies, the cost of such reporting often becomes greater than the benefit they avail from such reporting (Bogomolova et al, 2018;Desfiandi et al, 2019;Dissanayake et al, 2019;Dienes et al, 2016;Fuadah et al, 2019;Haddock, 2005;Ho and Taylor, 2007;Khan and Hassan, 2019;Mudiyanselage, 2018;Orazalin and Mahmood (2018)).…”

“…This variable is mostly measured by market returns, return on assets (ROA), or return on equity (ROE), market-to-book value (or Tobin's q), intensity of capital, financing activities of the company in the capital market, and higher systematic risk (beta or stock price volatility). The more profitable the company is, the more its capability to bear the costs incurred for sustainability reporting and adjust with any potential negative information disclosed through such reporting (Cormier and Magnan, 2005;Dienes et al, 2016;Dissanayake et al, 2019;Fuadah et al, 2019;Hahn and Kühnen, 2013;Haniffa and Cooke, 2005;Khan and Hassan, 2019;Mudiyanselage, 2018;Orazalin and Mahmood, 2018). However, the empirical evidences provide mixed results in this aspect.…”