Evaluating the outcome effectiveness of the global reporting initiative transitions

Abstract

Purpose This paper aims to evaluate the outcome effectiveness of the global reporting initiatives (GRI) transitions by understanding how companies have responded to the changes from G3.1 to G4 and finally to the GRI Standards. Design/methodology/approach A quality disclosure score is developed that incorporates assessments of both the quality of disclosures and the materiality of Australian companies. To analyse materiality, survey data were collected from 187 companies. Disclosure scores are based on a content analysis of the sustainability reports of 12 mining and metals companies and 12 financial services companies that used the GRI Standards from 2011 to 2019 (a total of 213 reports). Findings The study found that the GRI transitions have not led to companies improving the quality of their disclosures on areas considered important for them to achieve their social and environmental goals. Instead, the companies tended to use a greenwashing strategy, where the quality of disclosure of material issues declined or fluctuated over time. Practical implications From a practical perspective, the disclosure score developed in this paper enables managers of companies to recognize a threshold of completeness and to summarize the areas that are not materially relevant to their business. Social implications The results are potentially helpful for investors, shareholders and other stakeholders, enabling them to better understand sustainability reports. Originality/value This study contributes to the body of research in sustainability reporting by providing evidence on the outcome effectiveness of the latest updates in the GRI framework.

A pattern‐based tool to support companies in sustainability‐oriented business strategies: grounded theory research in agribusiness

“…The interest in and the relevance of GRI standard reporting has been emphasized by many empirical and theoretical evidences. Several surveys attested the huge of companies that chose to perform GRI-compliant sustainability reports worldwide, contributing to a positive trend in the implementation of sustainability actions (Alliance for Corporate Transparency, 2020;KPMG, 2022;Zharfpeykan & Akroyd, 2023). In the international scientific panorama, different studies investigated the implementation of GRI standards for different sustainability purposes, contributing to feed the body of knowledge with advancements on the topic (Aké & Boiral, 2022;del Mar Alonso-Almeida et al, 2014;Fuente et al, 2017;Gallego-Álvarez et al, 2018;García-Sánchez et al, 2019;Ligorio et al, 2022;Machado et al, 2021;Moneva et al, 2006;Pizzi et al, 2022;Siew, 2015).…”