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GRI-based Sustainability Reporting in the European Union Energy Sector: A Comprehensive Overview

Author

Listed:
  • Ana Zrnic

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek)

  • Dubravka Pekanov

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek)

  • Ivana Fosi?

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek)

Abstract

This paper provides an analysis of sustainability reporting practices in the European Union, focusing on indicators disclosed by energy companies in accordance with the Global Reporting Initiative (GRI) guidelines and standards. By analyzing data from sustainability reports of energy companies between 2016 and 2019, the paper investigates the evolution of indicator disclosure over time. The findings reveal that economic indicators have been consistently reported without significant fluctuations, while environmental indicators show a slight decline since 2017, albeit without major deviations. On the other hand, social indicators demonstrate a positive trend throughout the entire period, particularly when compared to the lowest disclosure rate in 2016. The analysis highlights the voluntary nature of GRI standards' application and the limited disclosure of economic indicators by companies. It underscores the need to include economic indicators in sustainability reports to ensure a comprehensive representation of all three dimensions of sustainability. Furthermore, the study suggests narrowing down GRI standards as many indicators are underutilized in the analyzed companies. While the development of sustainability reporting standards for EU companies is underway, global comparability remains a challenge. Therefore, the paper envisions the future development of a global sustainability reporting framework, akin to financial reporting, to enhance organizations' assessment, comparability, and improvement of sustainability performance. In this regard, the GRI framework, based on its current application, holds potential for further refinement and formalization. Ultimately, achieving adequate standardization and harmonization will be crucial in advancing the field of sustainability reporting. This is particulary important for investors interested in making informed decisions based on environmental, social, and governance (ESG) factors.

Suggested Citation

  • Ana Zrnic & Dubravka Pekanov & Ivana Fosi?, 0000. "GRI-based Sustainability Reporting in the European Union Energy Sector: A Comprehensive Overview," Proceedings of Economics and Finance Conferences 14115959, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iefpro:14115959
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    References listed on IDEAS

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    1. Nurlan Orazalin & Monowar Mahmood, 2019. "Determinants of GRI-based sustainability reporting: evidence from an emerging economy," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 10(1), pages 140-164, September.
    2. María del Mar Alonso‐Almeida & Josep Llach & Frederic Marimon, 2014. "A Closer Look at the ‘Global Reporting Initiative’ Sustainability Reporting as a Tool to Implement Environmental and Social Policies: A Worldwide Sector Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(6), pages 318-335, November.
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    4. Klaus Dingwerth & Margot Eichinger, 2010. "Tamed Transparency: How Information Disclosure under the Global Reporting Initiative Fails to Empower," Global Environmental Politics, MIT Press, vol. 10(3), pages 74-96, August.
    5. Colin Higgins & Wendy Stubbs & Markus Milne, 2018. "Is Sustainability Reporting Becoming Institutionalised? The Role of an Issues-Based Field," Journal of Business Ethics, Springer, vol. 147(2), pages 309-326, January.
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    More about this item

    Keywords

    Sustainability reporting; GRI standards; Energy companies; Sustainable investment;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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