Are Environmentally Innovative Companies Inclined towards Integrated Environmental Disclosure Policies?

Isabel-María García-Sánchez,Filippo Vitolla,Nicola Raimo

doi:10.3390/admsci11010029

Isabel-María García-Sánchez, Filippo Vitolla + Show 1 more

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https://doi.org/10.3390/admsci11010029

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Abstract

In recent years, the correct representation of environmental performance has become increasingly important. In light of this, in the academic field, numerous researchers have examined the level and quality of environmental disclosure. However, in the context of studies relating to the determinants of environmental disclosure, little attention has been paid to the role of environmental innovation. This study, in the context of voluntary disclosure theory, aims to fill this important gap through the analysis of the impact of environmental innovation on the level of integrated environmental information disclosed by companies and the analysis of environmental performance as a mediating factor in this relationship. The results show a positive relationship between environmental innovation and integrated environmental disclosure. In addition, they show that environmental performance represents a mediating factor in this relationship. However, complementary analyses show that responsible firms adopt silent strategies in their environmental integrated disclosure policies in order to limit the knowledge by external users of the different environmental actions implemented.

Highlights

According to the Global Risks Report published by the World Economic World Economic Forum (2020), for the first time, the global risks that top the list, predicted in terms of probability, are all connected to the environment
This study aims to fill this important gap through the analysis of the impact of environmental innovation on the level of integrated environmental information disclosed by companies and the analysis of environmental performance as a mediating factor in this relationship
In an attempt to open the black box involving the relationship between environmental innovation and integrated environmental disclosure, this study examines the mediating role of environmental performance

Summary

Introduction

According to the Global Risks Report published by the World Economic World Economic Forum (2020), for the first time, the global risks that top the list, predicted in terms of probability, are all connected to the environment. There have been numerous environmental disasters ranging from the explosion of the British Petroleum Oil Spill in the Gulf of Mexico to the nuclear accident at the Fukushima plant in Japan, to the recent Amazon forest fires. The causes of these environmental disasters are partly attributable to humans and are mainly related to overpopulation, pollution, industrialization, deforestation, global warming and climate change. The dissemination of environmental information assumes significant importance for firms as it contributes to the sustainability of the business in the long term (Bennett and James 1998; Jitmaneeroj 2016), which is increasingly closely related to the satisfaction of the needs of direct and indirect stakeholders (Dyllick and Hockerts 2002; Vitolla and Raimo 2018; Vitolla et al 2018)

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