GRI Standards Research Articles

The environmental accounting strategy and waste management to achieve MSME’s sustainability performance

This study aims to examine the effect of the environmental accounting strategy on sustainability performance and explore waste management as a mediation between environmental accounting strategy and the sustainability performance of Micro, Small and Medium Enterprises (MSMEs). Research data was collected from 194 MSMEs in East Java Indonesia through online and offline questionnaires. The data analysis is performed with PLS-SEM. The results of the study found that the MSME’s environmental accounting strategy had an effect on sustainability performance, and it was proven that MSME’s waste management mediated the effect of environmental accounting strategy on MSME sustainability performance. The originality of this research is the development of research instruments, which combine from various sources from previous researchers, GRI standards and Indonesian Government Regulations so that they can contribute Environmental Management Accounting literature and practical contributions to MSMEs and related institutions in determining sustainability performance strategies. This research implication supports the goals of the Indonesian Government’s Sustainability Development Goals (SDGs) regarding SDGs Goal number 12 Responsible consumption and production. The government needs to establish a waste management policy to improve environmental problems. The implications of future research can collect larger data and can compare the MSMEs between emerging countries. Also, MSMEs need to establish strategic Environmental Accounting so that it has an impact on sustainability performance

Effect of Board of Directors Size, Board of Directors Characteristics, Ownership Structure, and Company Size on The Quality of Sustainability Reporting Disclosures

This study aims to analyze the quality of Sustainability Reporting disclosures and test the factors that influence them. The quality of Sustainability Reporting disclosures is identified using content analysis techniques based on the GRI Standards. GRI Standards is the latest guideline launched by the Global Reporting Initiative which became effective in 2018 in Indonesia. Factors influencing the quality of Sustainability Reporting disclosures were tested using quantitative methods of multiple regression analysis. This study used 36 samples obtained through purposive sampling from infrastructure sector companies listed on the Indonesia Stock Exchange that disclosed sustainability reporting for the 2016-2021 period. The results showed that the quality of sustainability reporting in Indonesia is still relatively low at 17.41%. This implies that voluntary sustainability reporting disclosures make companies less motivated to make in-depth disclosures. The number and characteristics of the company's board of directors have a significant influence and the ownership structure and size of the company have a significant positive influence on the quality of sustainability reporting.

The Moderating Role of Sustainability Disclosure on the Relationship between Intellectual Capital and Firm Performance

The purposes of this research were to study the relationship between intellectual capital and firm performance, and the relationship between intellectual capital and firm performance which was moderated by sustainability disclosure. The accounting firm's performance was measured by return on assets (ROA), and the market firm's performance was measured by Tobin's Q. Sustainability data were collected according to GRI Standards. The intellectual capital was measured by value-added intellectual capital (VAIC). The sample included 185 firms from three industries; agriculture and food, technology, and service industry listed on the Stock Exchange of Thailand from 2018 to 2020. The results showed that intellectual capital had a positive relationship with accounting performance and market performance. When the moderating role of sustainability disclosure was examined, it was found that sustainability disclosure positively moderated the relationship of value-added intellectual capital (VAICTM) on market performance (Tobin’s Q) at a significance level of .05. The results showed that intellectual capital influenced firm performance and enhanced firm efficiency, particularly when firms paid attention to sustainability disclosure.

Study on the Global Sustainability of the Korean Construction Industry Based on the GRI Standards.

This study began with the increasing importance of ESG through sustainable management evaluation across all industries, predicting market demand through the ESG management paradigm and financial environment changes in the global industry, and establishing international strategies for the construction industry. Compared to other industries, the construction industry is in the early stages of ESG formation, and it is unclear how to expand its base by establishing evaluation system standards such as innovation of individual services, interaction of social capital, and definition of stakeholders. Currently, some large construction companies in the construction industry are publishing sustainability management reports at the group level, but given the recently strengthened global sustainability of ESG by GRI Standards, efficient analysis of global construction markets and strategic orders are needed. Therefore, this study focuses on assessing the sustainability strategies and directions of the construction industry from an ESG perspective. To this end, sustainability issues and insights, as well as global issues in Korea and the worldwide construction sector, were analyzed. The analysis showed that global construction companies were highly interested in business management approaches, such as safety and health, as critical issues regarding the construction industry's sustainability strategy. In contrast, South Korean construction companies prioritize business values such as value creation, fair trade, and win-win. Both global and South Korean construction companies have been working on greenhouse gas reduction and energy sustainability. Regarding other issues, cultivating construction specialists, enhancing the job training system, and limiting serious accidents and safety mishaps were all significant from a social standpoint among South Korean construction companies. Conversely, global construction companies appeared to focus on issues related to ethical and environmental management from an organizational standpoint.

Do the Levels of Environmental Sustainability Disclosure and Indebtness Affect the Quality of Earnings?

Previous research has found that, when firms engage in environmental sustainability practices, they tend to give a consistent signal to external stakeholders by acting in a more responsible, transparent, and ethical manner, and these firms tend to exhibit high earnings quality. However, other studies have found that those activities may mask a poor earnings quality. On the other hand, firms with high debt levels face constraints in raising funds. In this study, we expect these firms, when involved in environmental reporting practices, to reveal an increase in their earnings quality in order to improve their ability to capture financing. Thus, we analyze whether the level of environmental disclosure and a firm’s debt increase earnings quality. To analyze the former association, we develop an environmental sustainability reporting index (ESReporting), based on GRI standards, using the content analysis for Portuguese firms from 2016 to 2020. We use earnings persistence as a proxy for earnings quality because it is a fundamental characteristic to determine firm value. Regarding debt, we include a financial indicator to analyze its effect on earnings persistence. To test the hypotheses, we estimate a multiple linear regression, applying panel data. Our results suggest that ESReporting and debt tend to positively affect earnings persistence. In addition, our evidence suggests that ESReporting produces a higher positive impact then debt. These results show that ESReporting and debt may be used as regulating mechanisms of earnings management. Besides, this article brings some insights to the improvement of earnings quality resulting from a higher commitment to environmental disclosure and contributing to monitoring managers’ activities.

Is Sustainability Report Disclosure Implemented Properly? (A Case Study of Companies Listed in Sri-Kehati Index)

This study aims to identify sustainability reports conducted by companies listed in the Sri-Kehati index. This is a qualitative research and the GRI standards are a reference in disclosure. The result of the research shows that there is no guarantee that companies listed in the Sri-Kehati index will make a complete disclosure, especially compliance with GRI standards. Too many aspects or reporting standards should be implemented following global standards such as GRI. Based on SRDI calculation, shows that AKR Corporindo, Perusahaan Gas Negara (PGN), Bank BTN, Cikarang Listrindo, Indofood Sukses Makmur, and Semen Indonesia are classified as companies that make disclosures with the highest GRI index. Meanwhile, companies with low disclosures include Bumi Serpong Damai, Telkom, Jasa Marga, Sido Muncul, PP (Persero), Kalbe Farma, and Adi Sarana Armada.

Corporate Social Responsibility of Five-Star Hotels in Bali

This study aims at describing the CSR of five-star hotels in Bali, analyze the perceptions of the surrounding community towards hotel CSR and provide recommendations for CSR strategies for hotels based on the GRI Standards and local community perceptions. Respondent samples were selected using purposive sampling and data in the study were collected using interviews, documentation and questionnaires. This study uses an interactive model of qualitative data analysis techniques. The results of the study prove that: for the CSR the five-star hotels in Bali do not have an autonomous sector and do not have their own budgetary authority. Five-star hotels in Bali have also not reported their own CSR activities in the sustainability report. CSR activities of the hotels are mostly in the form of donations (philanthropy). 29% of the CSR activities of the hotels are perceived as low by the surrounding community, and in the end, this research is able to produce several recommendations for CSR management strategies for five-star hotels in Bali.

Analysis of the Extent of Corporate Environmental Sustainability Disclosure in India

The present study's goal was to identify measures and solutions in light of environmental information in corporate sustainability reporting practices in India. For this purpose, corporate sustainability report of 15 Indian Companies for the periods 2016-17 to 2019-2020 were checked and examined. 15 sample companies were selected following “Core &speaker; and Comprehensive Status” from the all-encompassing table of GRI as a pilot study. Based on disclosure check list of 32 environmental aspect parameter of GRI Standards 2016 and unweighted announcement index, the present study measures the consideration of GRI Standards revelation two together at the aggregate level and in respect of environment category of GRI standard. The result shows that in consideration of overall environment GRI Standard disclosures varies from 15.63% to 93.75%. The minimum revelation score of 15.63% is immeasurable. But the maximum announcement score is 93.75%. A mean disclosure score of 67.92% displays a comparatively moderate level of announcement. The study discloses a roomy alternative in consideration of environmental disclosure with range and standard deviation 78.13% and 22.66% respectively. On studies of research findings, the researcher concludes that there exists scope for improvement of environmental aspect reporting by Indian companies.

Conformité des pratiques de reporting en matière de développement durable avec le cadre de la Global Reporting Initiative : Une analyse du secteur mondial de la santé

L'Objectif : Le but de cet article est d'étudier la conformité des pratiques de reporting en matière de développement durable pour le secteur de la santé avec le cadre de la Global Reporting Initiative (GRI). Conception/méthodologie/approche : 2440 rapports de développement durable publiés entre 1999 et 2019 par 632 organisations de santé dans le monde entier ont été examinés à l'aide d'une analyse de contenu. Une méthodologie de recherche descriptive, comprenant une revue de la littérature, a été appliquée afin d'atteindre l'objectif déclaré. Résultats : Les résultats indiquent que (1) la tendance croissante des organisations de santé à publier des rapports de développement durable conformément aux lignes directrices GRI ou aux standards GRI est remarquée chaque année ; et que (2) 68% des 2440 rapports publiés par les organisations de santé (services et produits) sont conformes au cadre GRI. Les tendances observées concernant la conformité des rapports avec le cadre GRI pourraient fournir une image complète des pratiques de divulgation des informations non financières dans le secteur mondial de la santé. L'article offre une étude intéressante sur les rapports de développement durable qui sont les instruments les plus couramment utilisés par les organisations pour rendre compte de leurs performances économiques, environnementales et sociales. Originalité/valeur : Cette recherche contribue à une littérature croissante sur la standarisation des rapports de développement durable dans le secteur mondial de la santé en fournissant une vision empirique de l'utilisation réelle du cadre GRI. L'article comble une lacune en matière de recherche dans le domaine des pratiques de reporting extra-financier des organisations de santé du monde entier.

Does Environmental Disclosure and Instagram Engagement affect Firm Performance? The Moderating Role of Board’s Gender Diversity

This study examines the impact of corporate environmental disclosure and Instagram engagement on firm performance, with the moderating role of board's gender diversity. Data from 100 firms listed on the KOMPAS100 index and the Indonesia Stock Exchange (BEI) for the period of 2019-2020 was collected. After removing firms with excessive missing data, the final sample comprised of 57 firms, resulting in a total sample of 114 for the years 2019 and 2020. Environmental disclosure data were obtained from corporate annual reports and stand-alone sustainability reports, analyzed using the GRI Standards. Engagement data with firms' official Instagram accounts were manually obtained from Socialblade. Hypothesis testing was conducted using Structural Equation Modelling (SEM) with Partial Least Squares (PLS). Findings indicate that environmental disclosure and Instagram engagement do not significantly impact firm performance. However, board's gender diversity moderates the relationship between Instagram engagement and firm performance, strengthening it. However, no significant moderating effect of board's gender diversity was found on the relationship between environmental disclosure and firm performance.

Analysis of the information verification model in non-financial reporting of oil and gas companies

The article is aimed at investigating the current practice of verifying information in non-financial statements of oil and gas sector companies. The study is based on the analysis of the current regulatory framework for confirming “(certification)” of non-financial reporting, which is structured into two blocks: regulatory documents that define the requirements for the disclosure of information in non-financial reporting, applied at the international and national levels, and regulatory documents that define the requirements for the verification of non-financial reporting at the international and national levels. A comparative analysis of the main standards and recommendations used for disclosure of information in ESG reporting is carried out. Regulatory acts containing general requirements for disclosure of information about the activities of PJSC oil and gas complex in the Russian Federation are considered. The systematization of Russian regulations in the field of disclosure of information on sustainable development and ESG factors and structural elements of the annual report is carried out and the characteristics of the main regulations for conducting an independent audit of non-financial reporting are given. In the course of the study, a matrix of categories was developed that ensure the reliability of public reporting. The features of the verification practice of Russian oil and gas companies that are system-forming are considered. An overview of Russian companies disclosing non-financial information in accordance with GRI, SASB, TCFD and CDP standards is presented. Based on the conducted research, it is concluded that the current regulatory framework in the field of confirmation (assurance) of non-financial reporting requires improvement of the terminology and differentiation of the concepts of “verification”, “assurance”, “confirmation”, “audit”, in order to develop the practice of business audit of the XXI century. The study can be useful for managers and decision makers aimed at implementing the Concept of Sustainable Development and achieving Sustainable Development Goals.

Ensuring the transparency of ESG reporting based on the development of its standardization

The purpose of the study was to consider the priority areas of development, the main innovations and the prospects for standardizing ESG reporting as a tool to ensure its informative and analytical value. The article highlights the prerequisites for promoting sustainability reporting and its standardization in the context of modern challenges associated with the need to consolidate efforts at all levels to implement the ESG agenda and spread responsible business practices. The content of the current changes in the GRI Standards related to updating Universal and Topic standards, developing Sector standards and, in general, improving the quality and consistency of ESG reporting standards is disclosed. The prospects for standardization of ESG reporting in connection with the implementation of the IFRS Foundation Project on the development of international standards for the disclosure of information on sustainable development, focused on the needs of investors and financial markets, are shown. New horizons for ESG reporting have been defined in the context of the development by EFRAG of new European sustainability reporting standards. The results obtained are aimed at expanding and improving the use of ESG reporting standards by organizations when disclosing information on the impact on the economy, the environment and the social sphere, and will contribute to further ESG business transformation.

The relationship between corporate governance and environmental social governance disclosure: a case of Euro-Asian firms

Despite the clear commitment of major companies around the world to the ESG disclosure, this study aims to explore this gap by examining the extent to which listed companies have reported on the ESG Disclosure since the approval. This paper aims to explore whether some internal and external factors affect the environmental, social and governance disclosure. It also reveals how companies that publish non-financial reports are increasingly publishing ESG Disclosure. The methodology proposed will draw on the multidimensional scaling as a multivariate assessment tool to evaluate and prioritize the effect of corporate governance on the environmental, social and governance disclosure. This paper uses a cross-country sample of 455 listed firms located in forty countries over the period 2010–2018. Interestingly, the results that have been found highlight the importance of the effect of the Global Compact membership, the adoption the GRI Standards, the higher level of independence of audit committee; the ESG Performance and the CSR strategy improve the ESG disclosure. This study adds to the existing body of accounting knowledge in several dimensions. Indeed, this is one of the little studies that investigate in the effect of corporate governance on the environmental, social and governance disclosure of Euro-Asian firms

Pengaruh Tekanan Pemegang Saham dan Umur Perusahaan terhadap Kualitas Sustainability Report

Sustainability report is a report submitted to the company's stakeholders to report the impact of company's activities on environment, social, and economy. Companies are expected to submit quality information to demonstrate corporate responsibility and can be used as a consideration in making decisions. However, there are still many companies that have not submitted a good and quality information in sustainability report. This study aims to determine the effect of shareholder pressure and company age on sustainability report quality. The population in this study are mining sector companies listed on the Indonesia Stock Exchange in 2018-2020. This study uses purposive sampling technique. Based on the sampling technique and criteria, 11 companies were obtained with an observation period of three years, so the total observations are 33 samples. This study uses descriptive statistical analysis methods and panel data regression models using Eviews 12 SV software. The results of this study indicates that the age of the company has a significant positive effect on sustainability report quality. Meanwhile, shareholders pressure do not affect the sustainability report quality. Based on the results of this study, the company is expected to improve the quality of the sustainability report in accordance with the GRI Standards and investors are expected to make the sustainability report as one of the considerations in investing. Future researchers are expected to use other independent variables or use different proxies for the variables and are also expected to choose a different research object.

DEVELOPMENT OF INTEGRATED REPORTING IN ENSURING A BALANCED SYSTEM OF MANAGEMENT SYSTEM INDICATORS

The publication analyzes the existing experience in the formation of integrated reporting by enterprises operating in Ukraine, a model of integrated reporting acceptable for use on its basis was developed and its role in ensuring a balanced system of indicators of the management system of domestic enterprises was outlined.The analysis of scientific research was carried out and it was concluded that the vast majority of domestic scientific approaches observe that integrated reporting considers a business entity as a mechanism for creating added business value, while the international experience of forming integrated reporting is characterized for the most part by considering such reporting as the basis of information about sustainable development indicators.The author's vision of the place of integrated reporting in the process of formation of business value is revealed, the level of spread of the practice of preparing integrated reporting in the world for 2017-2020 is summarized, the dynamics of the formation of integrated reporting of economic entities of Ukraine for the analyzed period are given. The state of formation and publication of financial and non-financial information as of September 1, 2021, was analyzed (using the example of agricultural enterprises of Ukraine). At the same time, the dynamics of the number of economic entities of Ukraine that submit reports in accordance with GRI standards have been revealed.The article proposes the author's own model of the integrated report of the agricultural enterprise, the mechanism of accounting and analytical support of the balanced system of indicators. The procedure for forming a matrix of a priori indicators of a balanced system according to an integrated report has been developed. The studies are summarized by presenting the author's vision of the Concept of the development of integrated reporting in providing a balanced system of indicators for the needs of the management system.

Tekanan Stakeholder dan Ukuran Perusahaan pada Sustainability Report

The research aims to determine the effect of stakeholder pressure and company size on the Sustainability Report. The research was conducted at the Indonesia Stock Exchange (IDX) using the 2017-2020 research period. The population in the research is all companies listed on the IDX in 2017-2020 which issued Sustainability Reports and used the GRI Standards. The number of samples used were 84 observations. In this research using non-probability sampling method with purposive sampling technique. Research using multiple linear analysis. The research results show that environmental pressure and company size have a positive effect on Sustainability Report, employee pressure and shareholder pressure have no effect on Sustainability Report and consumer pressure has a negative effect on Sustainability Report.
 Keywords: Sustainability Report; Stakeholder Pressure; Company Size.

Investigating the Quality of Gender Equality Non-Financial Information Disclosed in the Cooperative Credit Sector: A Case Study

Credit institutions, according to the 2014/95/EU Directive (implemented in Italy with Legislative Decree No. 254/2016) are obliged to report non-financial and diversity information. Our article focuses on the diversity information to investigate whether the obligation to disclose diversity information within the mandatory non-financial statement (NFS) led to an improvement of the quality of the gender equality information. To address this aim we analyzed five consolidated mandatory NFSs (CNFSs) for the Iccrea Cooperative Banking Group (ICBG) covering the 2017–2021 period. We selected ICBG because of the dearth of studies on the cooperative banking sector, which represent a relevant component of the national banking system in Italy. To the best of our knowledge, this paper is the first study to explore the quality of information on gender equality in mandatory NFSs for a cooperative banking group using a longitudinal approach. The analysis of the case study’s findings provides evidence that ICBG worked to align its gender information with the Decree requirements and the GRI standards. The longitudinal analysis highlights that, during the five years under study, the ICBG’s information on gender came to fully reflect the EU and Italian requirements.

Pengaruh Kualitas Sustainability Report terhadap Relevansi Nilai Informasi Akuntansi

We examine the effect of the quality of the Sustainability Report on the value relevance of accounting information. The population is all companies listed on the Indonesia Stock Exchange for the 2016-2019 period. Sampling was carried out by purposive sampling which resulted in 60 companies with 4 years of observation (2016-2019). The value relevance of accounting information is carried out by the price model, Ohlson (1995). The quality of the Sustainability Report is measured by a disclosure index based on GRI G4 and GRI Standards. The results show that in 2016-2019 observations, the quality of the Sustainability Report has a negative effect on the value relevance of accounting information. This phenomenon was caused by market anomalies in the value relevance of accounting information in 2019, due to the Covid-19 pandemic, which had an impact on the overall decline in Indonesian stock market prices at the beginning of 2020. In further testing, it was carried out by excluding 2019 observations, and the results were showing an increase in the quality of sustainability reports, increasing the value relevance of accounting information.

Does carbon emissions disclosure affect Indonesian companies?

This research aims to examine the factors that influence the disclosure of carbon emissions. The factors tested are PROPER rating, company size, profitability, leverage, and audit committee. The population in this study comprises high profile companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. Purposive sampling is used in order to obtain 18 companies with 90 units of analysis. Multiple linear analysis was used to test the effects the variables have on each other. The quantity determination of carbon emission disclosure is measured using the GRI Standards 2016 index checklist by comparing the total items disclosed with the maximum total disclosed. The results of this study indicate that company size has a positive effect on carbon emission disclosure, while PROPER rating, profitability, leverage, and audit committee do not affect the disclosure of carbon emissions.

Standardization of Information Disclosure in Non-Financial Reporting of Commercial Organizations

The paper describes the problem of standardization of the formation of non-financial reporting of Russian commercial organizations, since the information requests of stakeholders are growing, in connection with this, commercial organizations are facing the problem of optimal disclosure of information about all aspects of their activities. The aim of the study is to analyze international standards and modern trends for the disclosure of non-financial in the standardization of information disclosure in reporting of Russian domestic companies and the possibility of their application for its formation. The methodological base of the study includes fundamental concepts and approaches, fundamental provisions of economic science and applied developments, substantiated by the works of foreign and domestic scientists in the field of non-financial reporting. The authors reviewed various approaches to understanding the materiality of reporting in terms of the amount of information covered by its various types. In the work’s course, the authors studied the existing international standards used by all commercial organizations in the preparation of their reports on sustainable development (using the GRI standards), as well as they proposed a critical analysis of the GRI and SASB standards and the content of the integrated report. Also, the reaserch highlited the features of GRI, SASB and IIRC. The theoretical and practical significance of the study lies in the generated recommendations for the standardization of non-financial reporting for Russian commercial organizations.