Green Disclosure Practices in Global Corporations: A Literature Synthesis
Keywords:
Green disclosure practices, effective mechanism, global sustainability, firm performance, GRI guidelinesAbstract
This paper presents a comprehensive review of green disclosure practices in global corporations, synthesizing existing literature to elucidate trends, determinants, and impacts. The study systematically analyses a wide range of academic articles, reports, and case studies to understand how different industries and regions approach environmental reporting.88 research papers and articles in all were reviewed. For more examination, the graphical part provides a summary of the literature review in the form of graphs and tables based on the publication’s year, the nations in which the study was conducted, the objectives of the studies, variables used in the studies, the statistical tools &techniques employed, etc. It also explores the relationship between green disclosure and firm performance, revealing mixed results that underscore the complexity of this dynamic.It was discovered that twenty-four countries were involved in the investigation. It was discovered that the majority of studies aimed to present a fundamental synopsis of green disclosure. While some studies indicate a positive correlation between comprehensive environmental reporting and financial performance, others suggest that the benefits are contingent on factors like industry context and firm size. The majority of researchers used descriptive statistics which shows that the role of descriptive statistics is very high in the analysis of data, while several authors used content analysis and regression the most. By providing a holistic view of current practices and suggesting avenues for future inquiry, this study aims to support the advancement of transparent and effective green disclosure mechanisms, thereby contributing to global sustainability efforts.
References
Agnes, K. (2023). The Effect of Green Accounting, Company Size, Profitability, Media Disclosure, and Board of Commissioners’ Size on Corporate Social Responsibility Disclosure. International Journal Papier Public Review, 4(2), 1–17.
Angelia, V., & Lastanti, H. S. (2024). The Effect of Green Accounting and Carbon Disclosure to Profitability, Intervened By: Green Innovation. International Journal of Education, Information Technology, and Others, 7(1), 239–249.
Bello, M., & Usman, T. G. (2022). Determinants of environmental disclosure of oil and gas companies in Nigeria. Journal of Accounting: (UBJA), 4(1), 28–40.
Cahyani, I. D., Wijaya, M., Octisari, S. K., Murdianingsih, T., & Danuta, K. S. (2022). The Influence of Green Accounting, Enviromental Performance and Corporate Social Responsibility on Profitability. Internasional Students Conference on Accounting & Business (FORKOMSA) , 2010, 935–949.
Chand, A., Kumar, N., Kumar, R. R., Prasad, S., Patel, A., & Stauvermann, P. J. (2022). Determinants of Social and Environmental Accounting Information Disclosure: An Analysis of top 50 Firms in New Zealand. Engineering Economics, 33(2), 118–131. https://doi.org/10.5755/j01.ee.33.2.20819
Deswanto, R. B., & Siregar, S. V. (2018). The associations between environmental disclosures with financial performance, environmental performance, and firm value. Social Responsibility Journal, 14(1), 180–193. https://doi.org/10.1108/SRJ-01-2017-0005
E-issn, I. V. O. L. N. O. P., & Tanwar, J. (2023). Impact of Social Responsibility Disclosure on the Integration of Green Accounting and Corporate Governance on Highly Polluted Industries in India. International Journal of Accounting & Finance Review, 14(2), 13–24. https://doi.org/10.46281/ijafr.v14i2.2027
Fajarini S.W., I., & Triasih, A. (2020). Determinants of the Quantity of Environmental Disclosure in Australian Companies. KnE Social Sciences, 2020, 1327–1342. https://doi.org/10.18502/kss.v4i6.6684
Fernando, K., Jocelyn, H., Frista, F., & Kurniawan, B. (2024). The Effect of Green Accounting Disclosure on the Firm Value of Listed Mining and Agriculture Companies in Southeast Asia Countries. International Journal of Energy Economics and Policy, 14(1), 377–382. https://doi.org/10.32479/ijeep.15151
Hassel, L., Nilsson, H., & Nyquist, S. (2005). The value relevance of environmental performance. European Accounting Review, 14(1), 41–61. https://doi.org/10.1080/0963818042000279722
Ifada, L. M., Indriastuti, M., Ibrani, E. Y., & Setiawanta, Y. (2021). Environmental Performance and Environmental Disclosure: The Role of Financial Performance. Journal of Asian Finance, Economics and Business, 8(4), 349–362. https://doi.org/10.13106/jafeb.2021.vol8.no4.0349
Joshi, P. L., Suwaidan, M. S., & Kumar, R. (2011). Determinants of environmental disclosures by Indian industrial listed companies: empirical study. International Journal of Accounting and Finance, 3(2), 109. https://doi.org/10.1504/ijaf.2011.043843
Kurniawan, R., & Fitrianita, V. (2024). The Effect of Green Accounting Implementation,Material Flow Cost Accounting, EnviromentalPerfomance, and Enviromental Disclosure onSustainable Development Goals (SDGs). Jame - Jurnal Akuntansi, Manajemen Dan Ekonomi, 26(1), 35–47.
Laksmi, A. C., & Hanin, I. U. D. (2022). Effect of Profitability, Leverage, Liquidity, and Green Accounting on Corporate Social Responsibility Disclosures: Study on Mining Companies Listed on the Indonesia Stock Exchange from 2016 to 2020. Jurnal Aplikasi Bisnis, 19(2), 227–286. https://doi.org/10.20885/jabis.vol19.iss2.art8
Lindawati, A. S. L., Geraldine, T. G., Handoko, B. L., Widuri, R., & Mustapha, M. (2023). Analysis of Sustainability Performance, Green Accounting and Esg Disclosure on Firm Valuation. International Journal of Contemporary Accounting, 5(2), 183–198. https://doi.org/10.25105/ijca.v5i2.17745
Luo, L., Lan, Y. C., & Tang, Q. (2012). Corporate Incentives to Disclose Carbon Information: Evidence from the CDP Global 500 Report. Journal of International Financial Management and Accounting, 23(2), 93–120. https://doi.org/10.1111/j.1467-646X.2012.01055.x
Lusiana, M., Haat, M. H. C., Saputra, J., Yusliza, M. Y., Muhammad, Z., & Bon, A. T. (2021). A review of green accounting, corporate social responsibility disclosure, financial performance and firm value literature. Proceedings of the International Conference on Industrial Engineering and Operations Management, 5622–5640. https://doi.org/10.46254/an11.20210952
Malarvizhi, P., & R Matta. (2016). Link between Corporate Environmental Disclosure and Firm Performance”–Perception or Reality? Sibresearch.OrgP Malarvizhi, R MattaThe British Accounting Review, 2016•sibresearch.Org, 5(3), 1–34.
Malik, F., Wang, F., Li, J., & Naseem, M. A. (2023). Impact of Environmental Disclosure on Firm Performance: The Mediating Role of Green Innovation. Revista de Contabilidad-Spanish Accounting Review, 26(1), 14–26. https://doi.org/10.6018/rcsar.407921
Mulaessa, N., & Lin, L. (2021). How do proactive environmental strategies affect green innovation? The moderating role of environmental regulations and firm performance. International Journal of Environmental Research and Public Health, 18(17). https://doi.org/10.3390/ijerph18179083
Mulyati, S., & Khalimatusadiah, N. (2023). the Effect of Implementing Green Accounting and Disclosure of Sustainability Reporting on Profitability (Comparative Study of Plantation Sector Companies Listed on the Indonesia Stock Exchange and Malaysia Stock Exchange). Accounting Research Journal of Sutaatmadja (ACCRUALS, 07, 123–141.
Nengsih, T., Majid, M., & Reza, P. (2023). Determinants of Economic Performance: An Analysis of Green Accounting and Environmental Performance Implementations. https://doi.org/10.4108/eai.19-7-2022.2328256
Nguyen, T. L. H., Nguyen, T. T. H., Nguyen, T. T. H., Le, T. H. A., & Nguyen, V. C. (2020). The determinants of environmental information disclosure in vietnam listed companies. Journal of Asian Finance, Economics and Business, 7(2), 21–31. https://doi.org/10.13106/jafeb.2020.vol7.no2.21
Ordóñez-Castaño, I. A., Herrera-Rodríguez, E. E., Ricaurte, A. M. F., & Mejía, L. E. P. (2021). Voluntary disclosure of gri and csr environmental criteria in colombian companies. Sustainability (Switzerland), 13(10), 1–18. https://doi.org/10.3390/su13105405
Putri, D. A., & Soewarno, N. (2020). Firm performance in environmentally-friendly firms in Indonesia: The effects of green innovation. International Journal of Innovation, Creativity and Change, 13(4), 464–481.
Rachmawati, S. (2021). Green Strategy Moderate the Effect of Carbon Emission Disclosure and Environmental Performance on Firm Value. International Journal of Contemporary Accounting, 3(2), 133–152. https://doi.org/10.25105/ijca.v3i2.12439
Rinsman, T. C. S., & Prasetyo, A. B. (2020). The Effects of Financial and Environmental Performances on Firm Value with Environmental Disclosure as an Intervening Variable. Jurnal Dinamika Akuntansi, 12(2), 90–99. https://doi.org/10.15294/jda.v12i2.24003
Shaikh, I. (2021). Environmental, Social, and Governance (Esg) Practice and Firm Performance: an International Evidence. Journal of Business Economics and Management, 23(1), 218–237. https://doi.org/10.3846/jbem.2022.16202
Sudarmaji, E., Medita Putri, I., Nasip, I., Muslim, M., & Oktrivina, A. (2022). Unveiling the Nexus between Green Accounting, Environmental Performance, and Corporate Social Responsibility Disclosure for Profitability Maximization. Atestasi?: Jurnal Ilmiah Akuntansi, 5(1), 321–335. https://doi.org/10.57178/atestasi.v5i1.624
Wang, S., Wang, H., Wang, J., & Yang, F. (2020). Does environmental information disclosure contribute to improve firm financial performance? An examination of the underlying mechanism. Science of the Total Environment, 714(96), 136855. https://doi.org/10.1016/j.scitotenv.2020.136855
Wulan Dupa, A., Hizazi, A., & Wahyudi, I. (2023). The effect of implementing green accounting and csr disclosures on the quality of financial reporting with institutional ownership as a moderation variable (Study of Energy Sector Companies Listed on the Indonesian Stock Exchange for the 2019-2021 Period). Journal of Management, Accounting, General Finance and International Economic Issues, 3(1), 131–151.
Downloads
Published
Issue
Section
License
The entire contents of the Indian Journal of Accounting are protected under Indian and international copyrights. The Journal, however, grants to all users a free, irrevocable, worldwide, perpetual right of access to, and a license to copy, use, distribute, perform and display the work publicly and to make and distribute derivative works in any digital medium for any reasonable non-commercial purpose, subject to proper attribution of authorship and ownership of the rights.
