Abstract
PurposeElectric utility companies (EUC) are expected to play a key role toward implementing ambitious climate change aims being under critical scrutiny by regulators and stakeholders. However, EUC provide an under-researched field regarding sustainability reporting with the focus on economic, social and ecological concerns. This paper aims to gain insights of the sustainability reporting practice of EUC and the coverage of indicators based on the Global Reporting Initiative (GRI)-Guidelines.Design/methodology/approachA twofold documentary analysis of 186 GRI-G4 sustainability reports by EUC globally is conducted to investigate the coverage rates of G4-indicators. Neo-institutionalism and strategic stakeholder theory serve as theoretical lenses. A regression analysis is used to examine ownership, stock-exchange listing, area of activity and region as potential drivers of sustainability reporting.FindingsResults show that the coverage of indicators based on triple-bottom-line dimensions is moderate in EUC leaving room for improvement. The coverage of sector-specific indicators lacks behind the coverage of standard disclosure indicators. Results show that private and listed EUC show better coverage rates than public and not-listed EUC.Research limitations/implicationsNeo-institutionalism shows limited homogenization in the sector. Strategic stakeholder theory demonstrates insufficient stakeholder compliance of public and not-listed EUC.Originality/valueThis study contributes to sustainability reporting research by focusing on the under-researched electricity sector. It provides practical reporting insights for EUC, the GRI and regulators.
Highlights
This paper aims to gain insights on the sustainability reporting practice of Electric Utility Companies (EUC) and their coverage of indicators based on the Global Reporting Initiative (GRI)-Guidelines and its sectorspecific supplement
4.1 Descriptive results This empirical study analyzed 186 GRI-G4 sustainability reports (SR) by Electric utility companies (EUC) from 2013 to 2017, most of which were published in the year 2016
Results show that a bit less than 78% of all SR cover sectorspecific indicators for electric utilities which are on average only covered to 42.6%
Summary
Cross-national guidelines and regulations like the EU-Directive or the Paris Agreement may overarch institutional contingencies in the different countries (as seen in Europe; Mosen~e et al, 2013) stakeholder expectations toward adaptation of renewable energy, securing access to electricity and transparent information place pressure onto EUC (Mosen~e et al, 2013; KPMG, 2017), whereby coercive isomorphism is developed (Boxenbaum and Jonsson, 2008). Coercive isomorphism may influence sustainability reporting of public and stock-exchange listed EUC due to regulations and societal expectations and the need for organizational and public legitimacy (Alrazi et al, 2016; Mosen~e et al, 2013). Normative isomorphism may influence sustainability reporting of international public and listed EUC due to available voluntary standards, guidelines, memberships (e.g. UN Global Compact) suggesting appropriate reporting practices (Gonzalez Gonzalez, 2010). The TCR was calculated taking the number of indicators as base giving all indicators the same relevance
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