The limits of environmental accounting disclosure: enforcement of regulations, standards and interpretative strategies
Résumé
Abstract
Purpose – The objective of this study is to provide insights into insiders’ perspectives on environmental
accounting disclosures, which is relatively under-investigated. Based on insights from key managers, we
provide information on company decisions and practices related to the data disclosed in annual reports. More
specifically, we explore how regulation guidance affects and shapes disclosure strategies.
Design/methodology/approach – Drawing on the normativity framework, our research design involves a
multiple-case study focusing on eight French listed firms in sensitive industries. We primarily build our
investigation on the analysis of annual reports. Semi-structured interviews with 20 key managers belonging to
these same firms provide interpretative explanations of the disclosed (and un-disclosed) figures.
Findings – Our main findings show that the disclosure of environmental accounting information (EAI) is still
in its infancy. Weak definitions and poor guidance in regulations explain the limitations in disclosure and
induce interpretative strategies depending on the type of data to be disclosed in the companies’ annual reports.
We document that separate logics drive environmental expenditure and environmental liability disclosures in
many respects.
Practical implications – This study should be useful for regulators because environmental accounting
standards are currently subject to change and helpful for users because of the careful consideration of
disclosures.
Originality/value – Our research is timely and adds to the growing body of research on regulation. We
document how a common regulation may lead to interpretative strategies by different actors and networks of
actors, thereby contributing to shaping EAI norms.
Keywords Environmental accounting information, Case study, Normativity, Grenelle 2 law,
Disclosure strategies
Paper type Case study