Disclosure ranking of environmental impacts of Brazilian companies: Analysis using multicriteria methods

Abstract

AbstractThis study aimed to rank the degree of environmental impact disclosure by approximately 100 Brazilian companies, using the multicriteria methods trade‐off decision analysis and technique for order preference by similarity to an ideal solution. To analyze and compare the data, a descriptive, documentary, and quantitative research effort was conducted with a sample of 97 Brazilian companies belonging to the IBrX‐100 index of the stock exchange from 2010 to 2013. From the companies’ sustainability reports and annual reports, we collected information about five environmental aspects: emissions, effluents, waste, products/services, and transportation. This information was used to identify the level of environmental disclosure using the multicriteria methods, and thus, develop rankings for the companies. The results revealed that only 67 companies disclosed at least one piece of information pertaining to the aspects analyzed. Importantly, from the two multicriteria methods, it was possible to perform environmental disclosure rankings, although there were slight differences in the results between the two methods. However, these differences have to do with the positions of the companies in the rankings. Given the above, these methods can be considered reliable for the development of classifications regarding environmental disclosure of the Brazilian companies analyzed. In addition, they contribute to the understanding of the companies' positions in relation to their environmental impacts and their reductions of these impacts, to create a better and more sustainable world.