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Circular economy and environmental disclosure in sustainability reports: Empirical evidence in cosmetic companies

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  • Riccardo Tiscini
  • Laura Martiniello
  • Rosa Lombardi

Abstract

The purpose of this paper is to investigate the content and quality of circular economy (CE) and environmental information (CEEI) disclosure in sustainability reports. Additionally, it provides suggestions for heightening CEEI disclosure. Using the content analysis, we analysed the changes that took place after the European Union (EU) action plan (2015) selecting a sample of sustainable reports in the cosmetic industry in Italy in 2014 and 2019 years. We applied the Climate Disclosure Standard Board (CDSB) framework focused on 12 reporting requirements designed to encourage corporate standardized disclosure of environmental information. Our analysis is performed through a frequency term analysis. Additionally, to measure the general shift of semantic over the two years towards CEEI, a semi‐supervised topic modelling approach was applied, whose topics were obtained by aggregating all terms with a significant variation from the content analysis. Findings show that the recent reports (2019) include terms related to the environment in a slightly more frequent way compared to 2014. We provide stronger evidence of the shift in the origin of the topics, being coherent with the changes introduced from the EU 2015 act, and the requirements of the CDSB framework nevertheless the CE seems still under‐reported in the area of governance, strategy, management and performance. The paper discusses the need for further Institutional (EU directives), regulatory (CDSB framework) and stakeholders' pressure (on companies. Finally, the implementation of an integrated reporting for social, economic and environmental disclosure is suggested as a way to ensure an effective CEEI disclosure.

Suggested Citation

  • Riccardo Tiscini & Laura Martiniello & Rosa Lombardi, 2022. "Circular economy and environmental disclosure in sustainability reports: Empirical evidence in cosmetic companies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 892-907, March.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:3:p:892-907
    DOI: 10.1002/bse.2924
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    References listed on IDEAS

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    Cited by:

    1. L'Abate, Vitiana & Raimo, Nicola & Vitolla, Filippo, 2023. "Circular Economy Disclosure through Social Media: An Empirical Analysis on Twitter," EconStor Conference Papers 279493, ZBW - Leibniz Information Centre for Economics.
    2. Vitiana L'Abate & Nicola Raimo & Francesco Albergo & Filippo Vitolla, 2024. "Social media to disseminate circular economy information. An empirical analysis on Twitter," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 528-539, January.
    3. Filippo Vitolla & Vitiana L’Abate & Felice Petruzzella & Nicola Raimo & Antonio Salvi, 2023. "Circular Economy Disclosure in Sustainability Reporting: The Effect of Firm Characteristics," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    4. Vitiana L'Abate & Nicola Raimo & Benedetta Esposito & Filippo Vitolla, 2024. "Examining the impact of circular economy disclosure on the cost of debt: A signaling theory approach via social media," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4007-4019, September.
    5. Christof Falkenberg & Carina Schneeberger & Siegfried Pöchtrager, 2023. "Is Sustainability Reporting Promoting a Circular Economy? Analysis of Companies’ Sustainability Reports in the Agri-Food Sector in the Scope of Corporate Sustainability Reporting Directive and EU Taxo," Sustainability, MDPI, vol. 15(9), pages 1-21, May.
    6. Saumyaranjan Sahoo & Anil Kumar & Arvind Upadhyay, 2023. "How do green knowledge management and green technology innovation impact corporate environmental performance? Understanding the role of green knowledge acquisition," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 551-569, January.
    7. Matteo Pozzoli & Raffaela Nastari & Sabrina Pisano & Marco Venuti, 2023. "How Circular Economy Disclosure Responds to Institutional Determinants Empirical Evidences in Non-Financial European Firms," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    8. Hea Young Lim & Ki Han Kwon, 2023. "Sustainable Assessment of the Environmental Activities of Major Cosmetics and Personal Care Companies," Sustainability, MDPI, vol. 15(18), pages 1-20, September.
    9. Sarfraz Nazir & Federica Doni, 2024. "Nexus of circular economy R0 to R9 principles in integrated reporting: Insights from a multiple case study comparison," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4058-4085, July.
    10. Filip Skärin & Carin Rösiö & Ann-Louise Andersen, 2022. "An Explorative Study of Circularity Practices in Swedish Manufacturing Companies," Sustainability, MDPI, vol. 14(12), pages 1-23, June.

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