Investigating the interplays between integrated reporting practices and circular economy disclosure

Federico Barnabè,Sarfraz Nazir

doi:10.1108/ijppm-03-2020-0128

Abstract

PurposeThis study seeks to: (1) discuss how the integrated reporting (IR) framework may provide the principles, concepts and the key elements to support the analysis and representation of circular economy (CE)–related activities and information; (2) explore how and to what extent current IR practices are including and disclosing CE-related information; (3) investigate through an exploratory case study the interplays between IR and CE.Design/methodology/approachBuilding on a theoretical analysis of the interplays between CE and IR, this study first performs textual content analysis on a dataset of 84 integrated reports to determine the type and extent of CE-related disclosure. Subsequently, the article presents and discusses an exploratory case study developed according to an action research perspective.FindingsThrough textual content analysis, the study provides data on CE-related reporting practices for 74 organizations operating worldwide, highlighting differences in reporting choices and emphasizing the role played by IR concepts. Through the exploratory case study, this article provides insights on how IR principles support the analysis and the (re)presentation of CE-related information.Research limitations/implicationsContent analysis is used to explore how and to what extent companies disclose CE-related information, not to investigate the quality of such disclosure. Only one single exploratory case study is used.Practical implicationsThis article advocates to embed CE data into integrated reports and according to IR principles. The exploratory case study offers useful insights and examples.Originality/valueThis work represents one of the first studies advocating and exploring the interplays between CE and IR. Additionally, this study aids in the development of a more standardized and established terminology for CE research and reporting practices.

Highlights

This article builds on the current debate (e.g. EEA, 2016; Bourguignon, 2016; UNEP, 2018) on how relevant it is for modern organizations engaging and subsequently communicating in an effective and structured way circular economy (CE) data and information.In contrast to today’s largely linear oriented systems (Millar et al, 2019), “a circular economy represents a development strategy that enables economic growth while aiming to optimize the chain of consumption of biological and technical materials” (EC, 2014b, p. iv)
All these categories and information were retrieved from the IIRC website and were considered of interest in investigating CE-related reporting practices over time, space and according to a cross-sector perspective
The concepts identified by the software were subsequently divided and grouped (i.e. “reclassified”) according to the four main categories of the fundamental elements theorized by the IIRC Framework (IIRC, 2013a), i.e. inputs, business activities, outputs and outcomes and for any major characteristic of the dataset

Summary

Introduction

This article builds on the current debate (e.g. EEA, 2016; Bourguignon, 2016; UNEP, 2018) on how relevant it is for modern organizations engaging and subsequently communicating in an effective and structured way circular economy (CE) data and information.In contrast to today’s largely linear oriented systems (Millar et al, 2019), “a circular economy represents a development strategy that enables economic growth while aiming to optimize the chain of consumption of biological and technical materials” (EC, 2014b, p. iv). This article builds on the current debate (e.g. EEA, 2016; Bourguignon, 2016; UNEP, 2018) on how relevant it is for modern organizations engaging and subsequently communicating in an effective and structured way circular economy (CE) data and information. In contrast to today’s largely linear oriented systems (Millar et al, 2019), “a circular economy represents a development strategy that enables economic growth while aiming to optimize the chain of consumption of biological and technical materials” The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

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