GRI Standards Research Articles

Comparison of Disclosure Levels of GRI Standards on Companies Listed on the IDX (Case Study Energy and Financial Sector)

Sustainability Reports are a hot topic among investors, company management and other stakeholders. With the mandatory sustainability reporting by OJK, the need for Sustainability Reports increases. This research aims to determine the level of disclosure of GRI Standards in Sustainability Reports in companies in the energy sector and financial sector of the Indonesia Stock Exchange. The content analysis method was used in this research to assess the content of sustainability reports from 53 selected companies on the Indonesia Stock Exchange for the 2022 period. The results of the analysis revealed that the level of disclosure of GRI Standards in energy sector companies was higher than in financial sector companies. Apart from that, in this research it is also known that the industry in which the company operates also influences the topics most frequently disclosed in the Sustainability Report.

Factors influencing environmental and circular economy disclosure of Viet Nam listed companies

This study examines the environmental and circular economy disclosures (ECED) level and factors influencing this level of 32 Vietnamese listed companies from 2018 to 2022. The content and frequency analyses are performed to determine the level of ECED, and regression analysis is to investigate the influencing factors. Drawing on a sample of 160 sustainable development and annual reports following the Global Reporting Initiative frameworks (GRI), the study evidenced that 32 listed companies paid great attention to the GRI 300 category (on environment topics) with the top three GRI standards 302 (energy), 307 (environmental compliance), and 303 (water and effluents), respectively. In addition, the Feasible Generalized Least Square method results showed that the companies with government ownership and Big4 audit services had a higher level of ECED. In comparison, larger companies had a lower disclosure level. Meanwhile, companies in the manufacturing sector with foreign shares and the independence of the Board of Directors did not affect the disclosure information disclosure level in the studied sample.

Enhancing financial transparency in non-profit organisations: Challenges and integration of IFRS for SMEs, IFR4NPO, and GRI standards

This study examines the challenges and needs faced by non-profit organisations (NPOs) in Colombia regarding the adopting of the International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs), particularly focusing on sections 3 and 4. Employing a mixed-method approach, the research combines qualitative and quantitative methods. Surveys were conducted with Colombia NPOs, official documents were analysed, and comparative case studies were performed. In-depth interviews and participant observation were also utilised to gain a comprehensive understanding of the obstacles and current practices within the Colombian context. The findings reveal that NPOs in Colombia encounter significant difficulties in adopting IFRS due to the complexity of the standards, lack of specialised resources, and the need for specific training. Internal challenges such as deficiencies in staff qualifications and training, resistance to change, and technological limitations were identified. Externally, ambiguities in the legal framework and donor requirements were highlighted. The case study illustrated that, while there are similarities between IFRS for SMEs and the IFR4NPO project, specific adaptations are essential to address the unique needs of NPOs. This research underscores the necessity of developing additional guidelines or modifying existing ones to enhance the interpretation and application of IFRS in Colombia NPOs. It is recommended to implement proactive strategies based on education and legislative reform to improve the transparency and comparability of financial information. Adopting a more tailored and supported accounting framework will facilitate a more relevant and sustainable implementation, benefiting Colombian NPOs in their resource management and accountability efforts.

Įmonių socialinės atsakomybės atskleidimo vertinimas didžiausiuose Lietuvos bankuose

The article examines the importance and regulation of corporate social responsibility disclosure. Based on the GRI standards and the recommendations of the Bank of Lithuania, the paper develops a methodology for calculating the corporate social responsibility index and a model for assessing its quality. The paper presents the results of an empirical study conducted to assess the disclosure of corporate social responsibility in the financial statements of the largest Lithuanian banks in the period 2018-2022. The results show that Lithuanian banks tend to disclose more than 91% of the recommended socially responsible information, while the quality of the reports, according to the selected criteria, reaches 64-82%. Nevertheless, it was noted that some banks do not produce CSR reports and publish group reports in languages other than Lithuanian. Some reports show signs of poor quality: the objectives are not specific and measurable and the textual information is repetitive throughout the study period.

Toward a novel Sustainability Transparency Index for improved governance in agri-food value chains: A comparative study of Finnish and Ukrainian companies

The paper addresses ESG-based disclosure and transparency measurement in the context of a comparative analysis of Finnish and Ukrainian agri-food businesses based on the Sustainability Transparency Index (STI) and Sustainable Development Goals (SDG). Based on the normalization method, SDG-related text mining, and qualitative text analytics, the sustainability information of the largest agri-food companies was traced. Among GRI, ISSB, and ESRS disclosure standards, only GRI 13 has clearly established SDG alignment with most material stakeholders’ requests. The results of the study give a snapshot of sustainability transparency in the agri-food business in 2023, where the indices of Finnish companies are higher than those of Ukrainian ones, with clear SDG 12, waste and water management priority compared to SDG 2 and sustainable agriculture in Ukraine. Regulatory recommendations based on a comparative analysis of sustainability disclosure in both countries include better alignment with EU (Finnish) benchmarks, reporting and assurance practices for Ukrainian companies, and the incorporation of recent EU sustainability disclosure approaches for Finnish companies. Acknowledgment Inna Makarenko gratefully acknowledges the support of the Academy of Finland (Decision 353888).  

Disclosure and transparency of sustainability information in Spanish social enterprises: An empirical study of audited special employment centers

AbstractThe research analyzes how certain factors such as activity sector, size, and economic‐financial performance can influence the level of disclosure and transparency of sustainability information in special employment centers. This publication is based on an empirical study applying a quantitative methodology in 194 social economy enterprises with data from 2020. The results confirm that companies that disclose sustainability information do so based on GRI standards and in all areas of sustainability. Belonging to certain activity sectors and size influence the disclosure of sustainability information. Also, the results show that assets, operating income, liquidity and economic profitability have an influence. This research contributes to improving the disclosure and transparency of sustainability information in social economy enterprises and provides indicators on management in sustainability aspects, useful for the analysis of subsidy management.

The effect of financial pressure and corporate social responsibility on tax aggressiveness: The moderating effect of the audit committee

This research aims to examine the effect of financial pressure and corporate social responsibility (CSR) on tax aggressiveness. In addition, this research also investigates whether audit committee can moderate the effect of financial pressure and CSR on tax aggressiveness. In this research, the financial pressures include financial targets and external pressures. This quantitative research uses secondary data with the population of all manufacturing companies listed on the Indonesian Stock Exchange period 2019-2021. Sampling is conducted using purposive sampling technique involving 216 companies obtained during three years of observation. Data analysis is conducted using Smart PLS 3.0 with SEM-PLS application to test the direct and moderating effect. The results of this research show that financial target has a negative effect on tax aggressiveness, while external pressure has a positive effect on tax aggressiveness. CSR has no effect on tax aggressiveness. Audit committee cannot moderate the effect of financial target, external pressure, and CSR on tax aggressiveness. This research contributes to the development of accounting literacy, especially in the study of financial pressure, CSR, audit committee and tax aggressiveness. Measuring tax aggressiveness can be done using CETR by adding the CSR variable as an independent variable with GRI standards. In addition, this research also uses financial pressure variable from the fraud triangle theory which is related to tax aggressiveness.

Pengungkapan Kinerja Sosial pada Aspek Sosial Instansi Pemerintah Daerah Melalui Laporan Keberlanjutan Berbasis Global Reporting Initiative

Bandung City Government is a government agency that has not published its own sustainability report. The reason why this research was conducted on the social aspects of sustainability reporting at the Bandung City Government is because these government agencies and should be role models for sustainable development as they act according to the public interest and the first step to take responsibility for the social impacts caused by the Bandung City Government is to publish a sustainability report. This research was conducted over a period of time from September 2023 to March 2024, and was conducted using a single case study process with the Bandung City Government with the specific method of Action Research. This method involved asking people with capacity in the Bandung City Government who had intensive and in-depth knowledge of the aspects that needed to be disclosed in the sustainability report for data. Further documentation was also taken to prove that the information was valid. It is then reported in GRI 401, 402, 403, 404, 405, 406, 407 for social aspects. General indicators regarding all information that needs to be disclosed are in GRI 2 and 3. Based on the research conducted, it aims that the Bandung City Government can disclose material information regarding general and social impacts into the Sustainability Report, using the GRI Standards as guidelines.

Integrating sustainability factors into corporate financial reporting in the modern ESG agenda context. Part 2

Subject. This article discusses innovations and trends in the development of corporate reporting standardization within the framework of the IFRS Foundation project and the initiative of the European Financial Reporting Advisory Group. Objectives. The article aims to reveal the essence of the main innovations and characterize the prospects for improving corporate financial reporting in the context of the development of ESG Standards by the International Sustainability Standards Board of the IFRS Foundation and the Task Force of the European Sustainability Reporting Standards Project. Methods. For the study, I used analysis and synthesis, comparison, and generalization. Results. Based on an analysis of the ESG agenda modern realities, the article identifies prerequisites and trends in the development of corporate reporting standardization in relation to the integration of sustainable development factors into financial reporting, and determines the impact of innovations of the two systems of sustainability reporting standards being developed on the informative and analytical value of corporate reporting. Conclusions and Relevance. The need to overcome the limitations and shortcomings of the GRI standards predetermined the development of two new systems of standards in the context of the ESG agenda modern realities. The International Sustainability Standards Board of the IFRS Foundation is developing standards designed to become a global framework for the disclosure of information on sustainable development, focused on the needs of investors and financial markets. The European Financial Reporting Advisory Group is developing European Sustainability Reporting Standards, which should cover a wide range of topics to meet the information needs of various stakeholders. New systems of ESG reporting standards are aimed at generating complete, coherent, comparable and verifiable information in the field of sustainable development. The research results obtained will contribute to the further promotion of sustainability reporting, improve corporate financial reporting practices by incorporating the impact of sustainability issues on value creation, and enhance stakeholder awareness and decision-making in a comprehensive and ESG-informed manner.

Materiality analysis in sustainability reporting: Insights from large Spanish companies

AbstractDespite the significance of materiality, its implementation has been perceived as ambiguous, opaque, and heterogeneous. This study focuses on analyzing materiality reporting among companies that utilize GRI and are listed on the Spanish stock exchange between 2018 and 2021. First, it examines the disclosure of materiality analysis by introducing a materiality disclosure assessment index (MDA) and exploring its determinants. Additionally, it investigates the alignment of material topics with GRI Topic Standards, analyzing the cross‐cutting nature of material topics. Our results indicate that MDA reached slightly over half of its maximum value. We found evidence that MDA is positively associated with membership in the IBEX 35, as well as with five out of the seven industries comprising the stock index. Furthermore, the years of disclosure experience in two industries significantly influenced MDA. Companies considered 20% of material topics as cross‐cutting, while another 20% had no direct correspondence with GRI standards. This study builds upon previous empirical findings on GRI materiality disclosure and provides valuable insights for research, practice, and standard setting.

Integrating sustainability factors into corporate financial reporting in the modern ESG agenda context. Part 1

Subject. This article discusses innovations and trends in the development of corporate reporting standardization within the framework of the IFRS Foundation project and the initiative of the European Financial Reporting Advisory Group. Objectives. The article aims to reveal the essence of the main innovations and characterize the prospects for improving corporate financial reporting in the context of the development of ESG Standards by the International Sustainability Standards Board of the IFRS Foundation and the Task Force of the European Sustainability Reporting Standards Project. Methods. For the study, I used analysis and synthesis, comparison, and generalization. Results. Based on an analysis of the ESG agenda modern realities, the article identifies prerequisites and trends in the development of corporate reporting standardization in relation to the integration of sustainable development factors into financial reporting, and determines the impact of innovations of the two systems of sustainability reporting standards being developed on the informative and analytical value of corporate reporting. Conclusions and Relevance. The need to overcome the limitations and shortcomings of the GRI standards predetermined the development of two new systems of standards in the context of the ESG agenda modern realities. The International Sustainability Standards Board of the IFRS Foundation is developing standards designed to become a global framework for the disclosure of information on sustainable development, focused on the needs of investors and financial markets. The European Financial Reporting Advisory Group is developing European Sustainability Reporting Standards, which should cover a wide range of topics to meet the information needs of various stakeholders. New systems of ESG reporting standards are aimed at generating complete, coherent, comparable and verifiable information in the field of sustainable development. The research results obtained will contribute to the further promotion of sustainability reporting, improve corporate financial reporting practices by incorporating the impact of sustainability issues on value creation, and enhance stakeholder awareness and decision-making in a comprehensive and ESG-informed manner.

An Analysis of the Influence of ESG Rating Divergence on Investor Sentiment

The global financial markets have experienced a significant development with the emergence of the notions of "sustainable development" and "green investing". This development involves the integration of Environmental, Social, and Governance (ESG) information into investment decisions. A significant advancement in the worldwide financial market is the integration of ESG (Environmental, Social, and Governance) data into investing choices. ESG ratings have emerged as a significant benchmark for investors in this scenario. However, there is now a considerable disparity in the rating outcomes provided by various rating agencies for particular companies. This disparity distorts the ratings and thus triggers exaggerated reactions from investors. This study investigates the influence of differences in ESG ratings on investor sentiment and its underlying mechanism using a sample of businesses listed on the A-share market in Shanghai and Shenzhen between 2015 and 2022. Research has shown that when there is a significant difference in ESG ratings, it has a detrimental effect on investor sentiment. This means that when there is a large divergence in ESG ratings, it negatively affects investor sentiment, leading to a decrease in their evaluation and confidence in the company. Empirical investigations demonstrate that the focus and consideration given by analysts and research reports play a crucial role in how differences in ESG ratings impact investor sentiment. Additional investigation reveals that the adoption of GRI standards and the verification of ESG reports by third-party entities can somewhat reduce the influence of divergence on the fluctuation of investor mood, as well as enhance investor acknowledgment of revealed information. The paper examines the influence of disagreement in ESG ratings on investor mood, contributes to existing research on ESG ratings dispute, and presents empirical evidence to support the development of China's ESG ratings system and the establishment of a "rational" investment market.

Pengaruh Good Corporate Governence dan Firm Size terhadap Pengungkapan Sustainability Report pada Perusahaan Sektor Energi yang Terdaftar di Bursa Efek Indonesia Periode 2020-2022

Companies or profit entities have the main goal of maximizing profits, but now this goal has shifted from how companies only want to get profits to how companies manage their social and environmental impacts. In Indonesia itself, not many companies disclose their sustainability reports. This research was conducted on energy sector companies listed on the Indonesia Stock Exchange for a 3-year period, namely 2020-2022. The sampling technique used was purposive sampling. The data analysis method used is multiple linear regression. Sustainability report disclosure in this study uses GRI Standards 2021. The independent board of commissioners and institutional ownership have no effect on the disclosure of the Sustainability report, then, the audit committee and firm size affect the disclosure of the Sustainability report. then simultaneously the independent board of commissioners, institutional ownership, audit committee, and Firm Size have a significant effect on the disclosure of the Sustainability report.

The Influence of Financial Indicators on Vietnamese Enterprise’s Sustainability Reports Disclosing Process

Sustainability reporting has become increasingly crucial for businesses worldwide, communicating environmental, social, and governance (ESG) performance to stakeholders. Despite the growing importance of sustainability reporting, there remains a gap in understanding how financial indicators influence the disclosure process, particularly in Vietnamese enterprises. This paper aims to address this gap by investigating the influence of financial indicators on the sustainability reporting practices of Vietnamese companies. Employing a mixed-methods approach, combining a quantitative analysis of financial data with a qualitative assessment of sustainability reports, the research seeks to uncover the nuanced relationship between financial performance metrics and the quality and extent of sustainability disclosures. The research was conducted to identify, evaluate, and measure financial factors affecting the quality of companies’ sustainability reports in Vietnam. The research is based on scoring the sustainable development reports of the top 100 listed joint stock companies on the HOSE—Ho Chi Minh City Stock Exchange. Based on the research model of Dissanayake, in the case of Vietnam, we build a scoring model for the sustainable development report based on GRI standards and add additional criteria appropriate to the situation of each listed company on the Vietnam stock exchange. Based on the research overview, our team tested hypotheses related to the short-term current ratio, total asset turnover ratio (AT), return on equity ratio (ROE), and debt-to-equity ratio (DE). The empirical results show that the AT and ROE significantly positively affect the sustainability reports; the DE hurts the sustainability reports. The findings are expected to provide valuable insights into the factors shaping sustainability reporting practices in Vietnam and contribute to the existing literature on corporate disclosure and sustainability.

ԿԱՆԱՉ ՁԵՌՆԱՐԿԱՏԻՐՈՒԹՅԱՆ ԷԿՈՀԱՄԱԿԱՐԳԻ ՀԱՇՎԵՏՎՈՒԹՅԱՆ ՇՈՒՐԶ/Green entrepreneurship ecosystem report overview

Currently, the organization of green entrepreneurship has become a strategic requirement in any organization, be it large or small. If the entrepreneurial activity is only aimed at making a profit, bypassing envi-ronmental and social issues, then it clearly loses competitive positions in the market, because apart from private interests, it does not serve public expectations. In this sense, along with traditional business, it is important to organize green business as well, with the aim of preventing the damage caused to the environment as a result of business. However, no matter how much organizations strive for green entrepreneurship, this process will not be successful if there is no effectively functioning green business ecosystem. Therefore, in practice, there is a demand for evaluating the results of the ecosystem of green entrepreneurship, when the global problem is to clarify both the scope and functions of that ecosystem, as well as their impact on the final results of green entrepreneurship. The article discusses the possibilities of accountability of the eco-entrepreneurial system of organizations, by using GRI standards.

Analisis Pelaporan Kinerja Lingkungan Pada Rumah Sakit Lavalette Tahun 2022

Lavalette Hospital Malang, located at Jl. WR. Supratman No.10 Malang City, can generate medical and hazardous waste, which can impact the environment. Many healthcare facilities still do not report their environmental performance with GRI standards as it is voluntary. However, to fulfill their environmental and social responsibilities, both external and internal, this environmental performance reporting is helpful. This research uses a qualitative method with a case study at Lavalette Hospital Malang to determine the management of responsibility and disclosure of environmental performance in accordance with GRI Standard 300 guidelines. The data used comes from documentation and interviews with environmental health staff and the Manager of Accounting, Finance, and IT at Lavalette Hospital. Then triangulation analysis was carried out. The results of the analysis show that Lavalette Hospital's environmental performance can be categorized into partial disclosure on GRI index 302: Energy, GRI 303: Water and Effluent, GRI 305: Emissions, GRI 306: Waste, GRI 307: Compliance, and GRI 308: Supplier environmental assessment.

Tax information in non-financial corporate reporting

Subject. This article deals with the issues of disclosure of sustainable development as a direction of modern corporate non-financial reporting, which provides an assessment of the implementation of the corporation's strategy in terms of economic, environmental and social aspects of activities. Objectives. The article aims to analyze the current practice of non-financial reporting, identify strengths and weaknesses, and identify aspects of sustainable development for the corporation and stakeholders. The article also aims to develop recommendations and methods for independently conducting the procedure for the formation of non-financial reporting by a corporation, as well as reveal the interaction of elements of reporting in the field of sustainable development with the indicators of consolidated financial statements in various tax jurisdictions, and identify promising areas for the development of the theory and practice of non-financial reporting. Methods. For the study, we used the methods of detailing, observation, generalization, comparison, classification, grouping, etc. Results. The article reflects the formation and disclosure of information on taxes paid by corporations in various tax jurisdictions based on GRI standards, which ensures that stakeholders make informed economic decisions. Based on the results of the study, it is proposed to make disclosure in the consolidated financial statements on the basis of information systematized in the proposed format of management reporting Taxation of Corporations in the Reporting Period. Conclusions and Relevance. Non-financial reporting will improve the transparency of corporate activities, improve stakeholder engagement, and broaden the information base for investment decision-making and corporate social responsibility assessment. The results of the research can be used in the practical activities of corporations when disclosing tax strategies and taxes paid by corporations in various tax jurisdictions in non-financial reporting.

Analysis of Corporate Social Responsibility (CSR) Implementation in The Achievement of Sustainable Development Goals (SDGs): Study of CSR Activities at PT Bio Farma (Persero) West Bandung

This study aims to analyze and examine the impact of CSR programs that are oriented and support the sustainable development program of PT Bio Farma (Persero). This research also focuses on analyzing the influence of CSR variables on SDGs with ROE as an intervening variable. This type of research is explanatory research with a quantitative approach. The data source comes from secondary data in the form of financial reports and corporate sustainability reports published on the company's official website from 2018 to 2021. The results of this study indicate that PT Bio Farma (Persero) has partially implemented the GRI Standards with a total score of 66%. In addition, the results of data analysis show that: 1) CSR has a significant positive effect on SDGs; 2) CSR has no significant effect on ROE; 3) SDGs has no significant effect on ROE; 4) The effect of CSR through SDGs on ROE is not significant.

Sustainable development goals: Sustainability reporting challenges in the United Arab Emirates context

AbstractDrawing on legitimacy theory, this study examines the extent of corporate engagement with the sustainable development goals (SDGs) through assessing the corporate disclosure quality of SDG‐related information in a mandated setting environment, focusing on the United Arab Emirates (UAE). Based on corporate sustainability reports for 132 UAE publicly listed companies in years 2020 and 20,221, we use a scoring methodology incorporating the GRI standards related to the economic, environmental and social impacts of corporate operations. Results of the study reveal that UAE companies use mandatory sustainability reports as a legitimacy tool through a symbolic action superficially integrating SDGs targets into their corporate operations and activities. However, in year 2021 the results show that some companies act substantively by adopting substantive organizational structural changes to integrate SDGs in their business operations and reporting behavior. Unlike previous studies, the paper contributes to the literature and practice by examining the corporate disclosure quality of SDGs in a mandated setting environment. This mandatory context offers an opportunity for a comprehensive analysis of company endeavors regarding their symbolic execution aimed at projecting a surface display of commitment to SDGs, versus their substantive implementation, which leads to significant enhancements in corporate sustainability reports. The findings of this study offer valuable practical implications for regulators and policymakers regarding the implementation of mandatory sustainability reporting. While such reporting may not necessarily result in significant changes in terms of integrating SDGs targets into business strategies and operations, it could potentially lead to the adoption of “SDG‐washing” practices by companies.

The Effects Of Sustainability Report Disclosures Towards Financial Performance Of Companies Listed In IDX80

In an endeavour to develop sustainability, companies disclose sustainability reports as a practice of corporate responsibility practices towards social and environment, which oriented towards fulfilling public expectations for the existence of a business. This study aims to examine the effect of disclosing economic performance, environmental performance, and social performance in sustainability report on the financial performance of companies listed in the IDX80 stock index. Disclosures of sustainability report is measured using the GRI Standards Index. The independent variables in this study are disclosure of economic performance, disclosure of environmental performance, and disclosure of social performance. The dependent variable in this study is return on assets. This study is a quantitative study using a sample of 47 companies listed on the IDX80 stock index as the research object. The data collection method used is the documentation method of content analysis of sustainability reports and financial reports. The data analysis method used the multiple linear regression analysis method. The results show that the disclosure of economic performance, environmental performance, and social performance partially has no effect on the company’s financial performance.