Abstract
Orientation: The emergence and adoption of integrated reporting (IR) opens up a new agenda for improving the level of environmental disclosures, especially for listed companies. This study explores the environmental information disclosed by mining firms that are listed on the Johannesburg Stock Exchange (JSE) and in essence expects that the level of corporate environmental disclosure (CED) will improve compared to the periods prior to the mandatory requirement of IR. Research purpose: This article examines the extent to which IR has influenced the level of CED among mining firms listed on the JSE. In addition, it determines variation in the level of CED on account of corporate governance attributes and firm-based characteristics. Motivation for the study: The natural capital is an integral fundamental concept upon which the other five capitals depend. The negative impacts of mining activities on the environment necessitate that mining firms demonstrate higher levels of commitment in this regard. Research approach/design and method: This study utilises data for the top 100 mining firms in the JSE between 2015 and 2018. This study obtained data on environmental and other variables through content analysis of the annual integrated and sustainability reports of sampled mining firms. Data analysis involves descriptive statistics and a one-way analysis of variance (ANOVA), with the aid of the Statistical Package for Social Sciences version 21. Main findings: We found no improvement in the level of CED under the IR approach compared to earlier periods. Further, the study found that firm size and board size are associated with the level of CED. Practical/managerial implications: If greater disclosure of information is preferable to less, policy-makers and regulators should give particular attention to environmental issues by extending the minimum regulatory requirements concerning the concept of the natural capital. Contribution/value-add: This study is one of the first few studies that bring to fore the relevance of IR to CED in the South African mining sector.
Highlights
The framework by the International Integrated Reporting Council (IIRC) and the King Reports on Corporate Governance compulsorily mandate that all companies listed on the Johannesburg Stock Exchange (JSE) prepare a single set of report providing both financial and non-financial information in an integrated manner
The extent to which this has helped improve the level of corporate environmental disclosure (CED), has created a gap in literature, which has not attracted sufficient attention in environmental disclosure research. It is in this context that this study aims to achieve the following objectives: (1) determine the extent to which integrated reporting (IR) has influenced the level of CED among mining firms listed on the JSE and (2) examine variations in the level of CED on account of corporate characteristics and corporate governance attributes
This study examined the level of CED under the present IR approach followed by firms listed on the JSE
Summary
The framework by the International Integrated Reporting Council (IIRC) and the King Reports on Corporate Governance compulsorily mandate that all companies listed on the Johannesburg Stock Exchange (JSE) prepare a single set of report providing both financial and non-financial information in an integrated manner. The purpose of the report is to enhance shareholders’ understanding of the firm and how it creates value over the short, medium and long terms (Barth et al 2016; de Villiers, Rinaldi & Unerman 2014; Melloni, Caglio & Perego 2017). Part of the coverage of the framework comprises the fundamental concepts of the six capitals: the financial, manufacture, intellectual, human, social and relational and natural capitals (IIRC 2013a). The framework, aims to provide insight on how the organisation interacts with the external environment and the capitals to create value for the firm. The concept of the natural capital becomes extremely crucial because it borders on environmental issues and is the only concept that conforms to the United Nations (UN) goal of development which meets the needs of the present without compromising the ability of future generations to meet their own needs. In order to protect the environment from the negative https://www.jefjournal.org.za
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