Corporate Environment Disclosures of Public Listed Companies in Sri Lanka

Abstract

Environmental degradation and other environmental challenges affect the present generation and the future sustainability along with development are becoming increasingly urgent. Thus, it is essential to measure, minimize and compensate for regulations, implement corporate strategies for the environment, increase demand for Corporate Environmental Disclosures (CEDs), etc. In addition, CED is considered a tool to communicate organizational environmental performances to a wide range of stakeholders. In this context, the objectives of this study are to assess the level of CEDs and to investigate the differences in CEDs based on the industry type in terms of Listed Companies in Sri Lanka. The study followed a quantitative approach with the longitudinal data collected from annual reports (i.e., 2015 – 2019) of Sri Lanka companies listed on the Colombo Stock Exchange. Data was collected using a CED index developed based on Global Reporting Initiatives (GRI). Findings suggest that there is a lower in CEDs during the period from 2015 to 2019 for public listed companies in Sri Lanka. Further, the findings revealed that the level of CEDs in the Compliance category is relatively higher. In contrast,the level of CEDs in the categories of Effluent and Waste, Water, Material, Biodiversity, and Supplier Environmental Assessment displays a relatively lower level of CEDs. In addition, the study found a difference in the level of CEDs based on the industry type. Finally, the study findings are expected to fill the empirical death related to the CEDs and provide considerable social and policy implications such as encouraging corporates to identify and report material disclosures on the environment and promoting the adaption of CED practices by the policymakers and regulators.