Sustainability reporting of major electricity retailers in line with GRI: Australia evidence

Abstract

Purpose This paper aims to comprehensively analyse the sustainability reporting practices of Australian electricity retailers in comparison with global sustainability reporting indicators outlined in the Global Reporting Initiative (GRI) framework. Design/methodology/approach Based on the GRI G4 sector-specific guidelines, the paper investigated Australian electricity retailers’ reporting in three broad areas of sustainability, namely, economic, environmental and social. The 2018/2019 annual reports along with websites, corporate social responsibility reports and standalone sustainability reports of the major electricity retailers listed on the Australian Energy Regulator were analysed and coded using a content-based technique. Findings The findings inform that electricity retailers’ disclosures are substantially varied between and within the three categories of sustainability reporting, and the majority of the retailers have failed to address over two-third of the GRI indicators. This study also shows that positive information is the dominant form of the disclosures, and reporting with declarative information without providing any quantifiable data is a common practice of the retailers who fail to address an indicator that requires information in numerical terms. Originality/value Electric utilities provide essential services to society and have a significant influence on sustainable development. This study contributes to the social disclosure literature, in particular in a developed countries energy sector context, and captures insights about the sustainability reporting and accountability behaviour of the major electricity retailers operating in Australia.

How Is the Utilities Sector Contributing to Building a Sustainable Future? A Systematic Literature Review of Sustainability Practices

“…Several studies [39,101,104,105,110,111] have highlighted the importance of adopting assurance tools, such as GRI standards, to enhance the materiality and reliability of information provided and reduce information asymmetries that threaten stakeholder trust and engagement building [33,110,111].…”

“…However, sustainability reporting suffers from some weaknesses, such as the lack of materiality and reliability. Several scholars [101][102][103][104] have noted the scarce reliability of these documents due to the communication of mostly qualitative data [105], which is difficult to measure and verify, as well as the presence of little quantitative data [39].…”

“…The use of appropriate indicators is essential for realizing the dialogue between the company and its stakeholders and for involving them [46] in strategies and decision-making processes. Performance indicators play a paramount role in reliability and materiality, and their overall accountability [39,47]. Indicators should cover all three dimensions of sustainability.…”

Corporate sustainability disclosure on social media and its difference from sustainability reports:Evidence from the energy sector

“…The literature has launched intense discussions on the research on the sustainability information activities of energy firms, e.g., Dilling (2016), Janik et al (2020), Mamun (2022) and so on. However, most of these studies are limited to traditional sustainability reporting activities, such as reporting in CSR reports, and research on emerging sustainability information activities on social media is lacking.…”

“…The quality of their reports was low. Mamun (2022) uses a sample of Australian power firms and finds that most of the sample firms failed to disclose more than two-thirds of the GRI indicators and preferred to use declarative information rather than quantitative data.…”