ENVIRONMENTAL DISCLOSURE BY AUSTRALIAN COMPANIES: WHAT IS HAPPENING OUTSIDE THE ANNUAL REPORT? CAROL ANN TILT

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1 ENVIRONMENTAL DISCLOSURE BY AUSTRALIAN COMPANIES: WHAT IS HAPPENING OUTSIDE THE ANNUAL REPORT? CAROL ANN TILT Senior Lecturer in Accounting School of Commerce Flinders University Phone: (08) SCHOOL OF COMMERCE RESEARCH PAPER SERIES: 02-5 ISSN: An earlier version of this paper was presented at the Asia Pacific Interdisciplinary Research in Accounting (APIRA) Conference, Adelaide South Australia, 2001 and the author thanks Dr Nola Buhr for her helpful comments at that event. The author also wishes to thank Mr Matthew Tilling for his valuable comments on earlier drafts.

2 ENVIRONMENTAL DISCLOSURE BY AUSTRALIAN COMPANIES: WHAT IS HAPPENING OUTSIDE THE ANNUAL REPORT? ABSTRACT The annual report has developed as one of the most common places to find environmental reporting, however, as is pointed out by many authors, there is no evidence that the annual report is used because it is the most appropriate medium or finds the relevant audiences for this type of material. This study therefore investigates a variety of other reporting media produced by Australian companies. A major implication of the findings is that except for the use of separate environmental reports or the company web site, little use is made of any other form of reporting media outside the annual report. The findings also suggest, however, that as the use of separate environmental reports increases, the predominance of disclosure in the annual report for environmental disclosure may diminish (although social disclosures may remain in the annual report), indicating a need for change in the direction of environmental disclosure research. INTRODUCTION The concept of where organisations do or should report, is an interesting one. While there is little debate about the appropriate place for financial information for use by owners, investors, and others, the reporting of social and environmental issues is more controversial. Over the past twenty or so years interest in the relationship between business and the environment has grown dramatically, mirroring the increasing importance of the environment to broader society. In researching the role of accounting and the environment, attention turns naturally companies annual report. The annual report has developed as one of the most common places to find environmental reporting evidenced by the early trend of increased information of this nature found in annual reports (Trotman & Bradldey, 1981; Gray et al, 1995a). However, this is most likely because it was initially seen as an extension of financial reporting, or as a public relations exercise. There is no evidence that the annual report is used because it is the most appropriate medium or finds the relevant audiences for this type of material. In fact, a few recent studies suggest 1

3 the opposite (see O Dwyer, 2000). Moreover, the plethora of research conducted on the annual report as a medium for environmental disclosures may have itself promoted the perception that this is where most reporting occurs and/or is appropriate. Interestingly, however, much research still refers to the annual report as being the preferred method of disclosing social and environmental information (for example Neu et al, 1998, p. 269) with little substantiation. Neu et al (1998, p. 269, emphasis added) talk about the relevant publics for environmental disclosures in the annual report as being financial stakeholders, regulators and environmentalists. However, there are other stakeholders of organisations who might have reason to examine environmental disclosures, such as the local community, customers and the general public. These relevant publics might look elsewhere for information, as the annual report is not readily available to them. Most likely they will turn to advertisements or brochures disseminated more widely than the annual report. In addition, Neu et al s (1998) relevant publics might also choose to consult specific environmental booklets/brochures for information on a company s environmental record, particularly now that many companies produce a separate environmental report. There is some evidence of this occurring (Deegan & Blomquist, 2000). Moreover, those who require quick access to environmental information about a company may first turn to the Internet. Most companies now develop their own web site and a number have been shown to include environmental information on their sites. While the majority of investigation into environmental reporting centres around the annual report to shareholders, many authors are quick to point out that this is not the only medium that could be used and offer this as a limitation of their research. Most of these studies cite Zéghal & Ahmed (1990) as the one prior study that investigated other possible media. Since 2

4 the Zéghal & Ahmed (1990) study, there has been little investigation conducted outside the annual report. It is the constant reference to other possible avenues for disclosure found within the annual report studies, that provides the justification for the current study. In order to determine to what extent organisations are reporting outside the annual report, this study investigates a variety of other reporting media produced by Australian companies. The results are considered in light of both the size and industry group of the companies, to make comparisons to the findings of other studies on annual report disclosures. Most previous studies have found that these two variables have a significant influence on the level of disclosure in annual reports (Cowen et al.,1987; Polonsky et al.,1992; Gray, 1994). PRIOR STUDIES Most previous studies of social and environmental reporting have concentrated on the disclosure of social information in the annual reports of large corporations (eg. Teoh & Thong, 1984; Freedman & Jaggi, 1986; Cowen et al., 1987; Guthrie & Parker, 1990; Harte & Owen, 1992; Roberts, 1992; Tilt, forthcoming). The annual report is not, however, the only medium for the disclosure of social information as discussed above (Zéghal & Ahmed, 1990). The question that arises if one accepts that the annual report is not the only or even the major medium for communicating social and environmental information, is what other media should be examined? Zéghal and Ahmed (1990) suggest that many other forms of reporting exist, such as environmental reports, advertising, employee reports, in-house magazines and press releases, and in their study analysed two of these advertisements and company brochures used by banks and petroleum companies. They also compared the level of utilisation of these two media with the annual report. Zéghal and Ahmed (1990) concluded that advertisements 3

5 are not a major means of disclosing social information (p. 46), while brochures did appear to be a widely used means of disclosing (p. 47). In particular, they found that the environment was the most important disclosure category in brochures produced by petroleum companies. Zéghal and Ahmed s (1990) study was conducted on 1982/1983 data and to date, little additional research has been conducted on other social disclosure media. This study goes some way towards addressing this dearth of research by re-examining advertisements and brochures (as well as some other media) and by comparing disclosures over time. However the study is limited to consideration of only environmental disclosures. METHOD The attempt at analysis of all the possible media used for disclosure presents a practical problem of enormous proportions - how to determine whether all forms of communication have been identified (Gray et al., 1995b). While most studies have overcome the problem by ignoring all but the annual report, this study attempts to go some way in addressing the problem by limiting the analysis to all company initiated communications other than the annual report. This overcomes the difficulty of identifying publicity that is initiated by parties outside the organisation, such as journalists and lobby groups. The analysis in this study was undertaken in two phases. First, all company-initiated disclosures made by the sample companies in 1994 were analysed. The results of this analysis indicated that little use was made of a number of media types other than separate environmental reports (see below). Thus, the second phase of the analysis (for

6 companies) was limited only to separate environmental reports to see whether their use had changed significantly. The first phase of the analysis was conducted on a sample of companies that were listed on the Australian Stock Exchange (ASX) in 1994, that were in the top 500 Australian companies by market capitalisation, and which stated that they have a formal, documented CEP in place. The existence of a CEP was determined via a survey (Tilt, 1997), and 75 of the 167 companies that returned the questionnaire stated that they had one. These respondents were then contacted and asked to provide any items that they use to disclose environmental information other than their annual report (such as press releases, advertisements, employee magazines or newsletters, separate environmental reports or other internal documents). In total, 39 of the 75 responded to the request for other items of disclosure (52%). The second phase of the analysis took place on 1999 data. As mentioned above, analysis of the 1994 data indicated the most common place for disclosure of environmental information outside the annual report was clearly a separate environmental report (see results section below). Therefore, the eight companies that issued a separate company-wide environmental report in 1994 were contacted to determine whether they produced one for 1999 (or 1998/99 depending on their year end) either in hard copy or electronically, and if so, a copy was obtained for comparison. Six of the eight companies were still producing a report in Another survey was also conducted to determine the extent to which companies generally were utilising separate environmental reports in From this survey, a further six reports from companies that have recently started reporting were obtained for analysis. 5

7 The disclosure items were analysed using a content analysis instrument developed in previous research. The instrument was pilot tested and reliability coefficients determined between three coders (see Tilt, forthcoming, for details). The categories used in the instrument were developed from prior literature and involved separating the single category environment into a series of sub-categories that have been determined to be the major elements of environmental disclosures by prior researchers (Cairncross, 1991; Shimell, 1991; Müller & Koechlin, 1992; Polonsky et al., 1992; Bansal, 1993; Gray et al., 1996; Tilt, 1997). These are presented in Table 1. Table 1 here Due to the variety of disclosure media being analysed, two measures of analysis were chosen. For press items and other miscellaneous items, sentences were determined to be the most appropriate unit of analysis as its use overcomes the problems associated with word or page counts arising due to differences in font, page size, inclusion of graphics and writing style (Milne & Adler, 1998; Tilt, forthcoming). Sentences were considered appropriate, as the disclosures were generally small amounts of text. Each sentence in the items analysed was read and classified as either an environment-related, or a non-environment-related sentence. Those related to the environment were then classified into one of the sub-categories shown in Table 1. For the separate environmental reports, and other magazines and booklets, pages were used as the main measure of disclosure as these disclosure items were much larger in nature. As all sentences in environmental reports relate to the environment, and all (hard copy) reports were produced as A4 booklets with similar font size this treatment was considered appropriate. Sentence counts in booklets dedicated entirely to the environment provide no additional information to that gained if pages are used as the proportions will be the same. These 6

8 booklets were analysed for the proportion of each report dedicated to various aspects of the environment such as targets, performance, policy, etc. Details are provided in the results section. RESULTS The 1994 disclosure media used most by the organisations surveyed (other than the annual report) included inter alia press releases or advertisements, separate environmental reports (including site reports), glossy booklets/brochures and internal magazines. Specifically, of the 30 organisations that sent other disclosure items, these included: nine organisations press releases, media articles or advertisements; eight general company environmental reports or brochures; seven site specific reports or brochures; five employee or shareholder newsletters or magazines; and four glossy corporate booklets (total is greater than 30 as some organisations sent more than one type of item). Nine organisations also sent a letter explaining that they do not disclose environmental information anywhere other than in their annual report. Of the eight companies that produced an environmental report in 1994, six produced one in 1998/99. Two of these were obtained in hard copy, two were available as downloadable pdf files from their web site and two were only available on-screen via the web site. An additional six reports were obtained from companies that began reporting separately in 1998 or 1999 (all hard copies). Although eight of the 12 companies did provide their report in hard copy, seven were accessed via their web site (the exact same reports were available either onscreen or as a downloadable pdf file). The other company did have environmental information on their web site but it was only in very summarised format with no data. Details can be found in the Appendix. 7

9 One difficulty in analysing these items is the varying amounts of each collected. In the discussion of the analysis that follows, the differences in items analysed are clearly indicated. Additionally, the analysis is limited to descriptive statistics and narrative discussion with few statistics used due to problems with comparability. Although a limitation, this is an applicable treatment as it is the first analysis of its kind to be undertaken. The exploratory nature of the analysis leads to many further research questions, which are discussed later. Analysis 1994 Data When considered in total, the other disclosure items analysed generally contain around 50% non-environment related disclosures and are declarative/narrative in nature. There did not appear to be any significant differences between industries as to the amount of disclosure dedicated to each characteristic, indicating that industry does not affect what is disclosed other than in the annual report (determined using Kruskal Wallis Tests). This contrasts with prior results found for annual reports using the same instrument, where industry was shown to be a major factor in determining disclosure levels (Tilt, 2001) it appears that while companies in the mining and petroleum industry disclose more than other companies in their annual reports, they are no more likely to disclose via other media. When the size groups were considered for each characteristic only one difference appeared for the general policies variable with larger companies including fewer disclosures about their general environmental policies in their environment report than smaller ones. Again, as found by Tilt (2001), this suggests that larger companies utilise the annual report for disclosure rather than other avenues. 8

10 The individual characteristics (sub-categories of environment) were then considered by disclosure item type (press item versus separate report versus magazine etc.) to determine whether any pattern emerged regarding where particular categories of disclosure might appear. Again, most characteristics showed no significant difference between the different items used for disclosure. This indicates that in general the type of disclosure media used does not affect what is disclosed, however, tests did indicate that the disclosure item type does affect how much is disclosed. The Kruskal Wallis Test for total disclosures showed that the items did not all come from the same population (p-value 0.001). Not surprisingly, general environmental reports are larger in size and therefore contain more disclosures. Corporate booklets and internal magazines contained the fewest number of disclosures. The individual disclosure items are now considered. Press Items (unit of analysis sentence) A variety of press releases, articles and advertisements were received from respondents. The content analysis on these items showed that press items mostly contained disclosure that was declarative in nature (a mean of eight sentences per press item). Very few sentences contain monetary or other quantitative material. Interestingly, most items contained a majority of non-environmental disclosures with a mean number per press item of 43 sentences (the mean number of total sentences per press item was 52). The reason of such a large amount of nonenvironmental related sentences was usually because a number of paragraphs were devoted to introducing the organisation including its size, operations and other details. Alternatively it was because the press item was a large press release covering many issues (often including financial results) of which the environment was only one. 9

11 The majority of press releases were about the environmental activities of the companies, such as pollution levels (mean three sentences); activities that affect land, water and forests (mean four sentences); and waste and recycling (mean three sentences). It would appear that companies generally only release environmental information to the press when a specific incident has occurred, a new product has been released, or a new technology or process has been introduced. For example, mining companies will make a statement to the media when they are rehabilitating a mine site, or an industrial company will release details of its new recycling plant. Internal Magazines, Newsletters and Corporate Booklets (unit of analysis sentence) Internally distributed magazines or newsletters for employees were received from five organisations. The magazines varied from four to 23 A4 pages, with the majority being eight to 10 pages. The average number of total sentences found was 26.5, with 22 being declarative in nature. Almost all of the disclosures concerned pollution levels, with a few on other activities such as waste and land issues. As these magazines are produced for employees it is surprising that very few contain disclosures regarding policies. Rather, they appear to be designed to inform employees about the company s activities. The following summarises the five magazines analysed with a brief description of the disclosures in each: Newspaper style magazine from a large mining company: One sentence regarding green groups in an article about marine research and an article about non-invasive techniques for monitoring and assessing large areas of vegetation. A 16 page magazine from a medium industrial company: 10

12 One sentence about the company s beautification program and a small article about a land care program. A 24 page magazine from a medium mining company: Contained three articles of one to two pages each. One on greenhouse emission levels including targets for reduction of emissions; one on a processing site clean-up; and one on the rehabilitation of the land at a mine site. An eight page magazine from a smaller mining company: Four sentences in the opening statement by the managing director regarding environmental commitment and waste disposal. A short article on tree-planting and an article on the company s subscription to the Earthwatch environmental Charter. A four page magazine from a medium industrial company: An article on environmental auditing. It appears that these internal magazines are employed to inform employees of the environmental initiatives taken by the firm, perhaps as a way of ensuring employee support. Items classified as corporate booklets included all glossy publications outlining the organisation s profile. These are not annual publications, but produced to provide general information about the organisation and its operations, goals, ownership, etc. As for internal magazines, the non-environment related sentences were not counted as the booklets were approximately 20 to 40 pages (A4) in length. For each of the four companies, it was noted whether the environmental disclosures were found in a special environment section or were located randomly throughout the document. 11

13 Interestingly, the major issue covered in these corporate booklets was the company s impact on land, water and forests with a mean number of sentences in this category of 22, compared to only one to three in any other category. Since this may be a coincidence due to the data being collected from such a small sample, or be due to industry classification, conclusions are not drawn as to why this issue dominated. A number of sentences were classified in the other category and these were usually general statements about the environment. For example, a smaller industrial company included rhetoric such as: The greatest challenge for the world today is to protect the environment while allowing industry to remain efficient and contribute to economic growth. One of the large mining companies dealt with its specific sites and the environmental aspects of these, while the large chemical company in the sample stated all of its environmental objectives. The average number of environmental sentences found in the corporate booklets was 12.75, with a range of one to 32. Again, most were declarative (mean of 11.5 sentences). Three of the companies had a separate section on the environment (sometimes including other things such as ethics or safety) and one had a single line on their environmental responsibility in the introduction. It would appear that companies do not consider these corporate booklets the most appropriate place for environmental disclosures. Environmental Reports (unit of analysis page) Eight companies sent an environmental report that they produce for their organisation as a whole and seven companies had specific environmental reports for particular sites or operations. The general reports were larger ranging from two to 40 A4 pages. Approximately 12

14 30% contained non-environmental disclosures that described the company and its operations as occurs in the press releases. These reports tend to be divided into sections on various environmental issues such as recycling, rehabilitation and packaging; or they have sections for various sites or processes within the company. They generally begin with an overall statement about the environment for example: [company name] have had a long-standing commitment to protect the environment and conserve natural resources. or [company name] is committed to continued economic and industrial growth essential to improve the living standards of all people, pursued in ways that are consistent with the long-term guardianship of the Earth s environment and resources. Specifically, the variables investigated showed that there was little in the way of target setting or performance data. Only two of the eight reports analysed had any form of performance information and both of these simply reported amounts of emissions, waste, recycling levels or trees planted. None were related to previously set targets. One report was dedicated entirely to compliance issues, two contained purely policy statements, and three provided detailed descriptions of their environment-related activities (ie. the extent of their recycling, site restoration procedures, procedures undertaken to minimise environmental impact, etc.). None of the reports were audited or verified in any way. 13

15 Seven companies had specific environmental reports for particular sites or operations. These were between two and eight A4 pages long. An average of 45% of these reports did not pertain to the environment. As with the other items analysed, the majority of environment related disclosure was declarative. As expected, most of these specific reports deal with pollution, land, waste and products as they are site or process specific. The other categories contain only one or two sentences on one page. The disclosures were most often general statements of environmental commitment and descriptions of rehabilitation processes, pollution control measures or waste disposal or recycling methods. A typical example follows from a large mining company s site specific brochure on a particular river catchment area: The Group believe that with community participation and commitment, in conjunction with a close government/community working relationship, effective and sustainable management of the catchment s resources is possible. These site reports did contain a few monetary disclosures, detailing the expenditure levels of various projects. The greatest amount of disclosure in environmental reports dealt with environmental policies, and environmental activities such as pollution, rehabilitation and waste. Summary 1994 Data While it would appear that in 1994 most companies did indeed use the annual report for the purpose of disclosing environmental information (Tilt, 2001), there was an apparent trend towards the use of separate environmental reports by minerals and chemical companies. These reports however, contained little detail on environmental performance. The other 14

16 media analysed found limited amounts of disclosure, and that which did appear was very general in nature. Analysis 1999 Data As separate environmental reports were the major medium used for environmental disclosure outside the annual report, and due to increased emphasis on separate environmental reports in the literature, the eight companies that produced one in 1994 were reconsidered in 1999 to determine whether such reporting had continued or increased. A survey was also conducted to determine the extent to which Australian companies in the top 200 in 1999 utilised a separate environmental report. Other media (apart from hard copy environmental reports and web based environmental reports) were not considered in 1999 due to difficulties in accessing the data and because little evidence of their use for environmental disclosure was found in Extent of Utilisation of Environmental Reports The top 200 publicly listed companies (according to the BRW top 500 list) were surveyed to determine whether or not they produce a separate environmental report. Although the response rate was relatively low (16.5%), 58% of these (19 companies) stated that they do produce a separate annual environmental report, with only 14 companies stating that they do not. The survey was anonymous, however, respondents were given the option to identify themselves and provide a copy of their environmental report. Of the 19 respondents, 12 that produced an environmental report identified themselves. Of these, eight sent their environmental report with the survey and four were obtained independently. Two of the companies that produced a report in 1994 did not produce one in This resulted in a 15

17 final sample of 12 reports for 1999, six of which could be compared to the 1994 reports. Ten of the 12 companies are from the mining industry, with one from the chemical industry. One diversified company has operations that cover both mining and chemical production. The evidence presented here, along with other research, indicates that the use of environmental reports, particularly in the minerals industry, is growing (Deegan & Blomquist, 2000). This may in part be due to the Minerals Industry Code for Environmental Management developed by the Minerals Council of Australia (MCA) in This Code had approximately 41 signatories in 1999 and includes a requirement for regular reporting on environmental performance. An environmental report must be produced by Code signatories within two years of signing (Deegan & Blomquist, 2000). Analysis of Environmental Reports (unit of analysis page) The specific content of Australian companies environmental reports has changed over the last five years. The inclusion of targets and performance data, and the use of an independent verifier/auditor for the reports have become important issues. The environmental reports analysed ranged from 16 to 48 pages excluding the front and back covers. The average number of pages (approximately 29) did not vary significantly between 1994 and The only group that stood out, were the two companies that did not produce a separate annual report in either hard copy or as a downloadable file. One of these had substantially smaller amounts of information available on-screen as part of their general web site the equivalent of about seven pages with no performance data, the other being more comprehensive (17 equivalent pages). 16

18 Four of the reports (two that reported in both years and two that reported only in 1998/99) included their environmental reporting within a report for other matters. Either a Health, Safety and Environment report (two companies), or a Social and Environmental report (two companies). Of these combined reports, approximately two-thirds to three-quarters of each report was dedicated to the environment. The content of the environmental sections however, did not differ substantially from the content of the other environmental reports analysed. The most predominant sections of environmental reports were found to be environmental activities averaging six and a half pages, and environmental performance data averaging six pages. All of the reports included at least a page on their environmental policy, and on their environmental management system. Most included targets and performance data, but only three mention sustainability, an important finding for future research. Seven of the 12 companies included a verification statement from an external verifier/auditor (58%). While in % of the reports contained non-environment related disclosures, in 1999, an average of 15% (five pages) of the report was dedicated to non-environmental issues. These disclosures included company profiles, financial results summary, feedback forms, contact details and letters from Directors/Chairpersons/CEOs. Table 2 summarises the findings. Table 2 here Summary 1999 Data The trend towards the use of separate environmental reports by minerals and chemical companies noted in 1994 continued in While this study did not examine annual report disclosures in 1999, prior studies have shown a levelling off in the amount of environmental disclosures found in annual reports after reporting sharp increases since the early 1980s. 17

19 Environmental reports in 1999 also show a clear trend towards more comprehensive reporting with the inclusion of performance data and external verification that was not evident in SUMMARY AND CONCLUSIONS Primarily, information on activities such as rehabilitation, waste and recycling, and pollution was disclosed in all of the disclosure media analysed in Disclosures were found predominantly in separate reports but also in press releases and advertisements. These disclosures were almost entirely narrative or descriptive, with little quantitative data provided. It is only possible to compare this study s analysis of other disclosure media to one other study, due to the paucity of alternative evidence. Zéghal and Ahmed (1990), in a study more limited in scope than the present study, found similar results. Their study was conducted on all types of social reporting, not just environment, for the years 1981 and It was conducted on Canadian firms and was limited to only two industries petroleum and banks. Specifically, disclosures were found to be narrative and concerned company operations or activities. These findings were supported by this study, albeit twelve years later and in a different country. Other findings from Zéghal and Ahmed (1990) were supported by this study. They found that advertisements were not a major means of disclosure and similarly for corporate brochures. This study confirmed that advertisements and company booklets contained no performance reporting and were confined to information on sites or activities. This study also attempted to answer one of Zéghal and Ahmed s (1990) questions whether non-annual report disclosures provide new information or reinforce existing disclosures in the annual report? by comparing the results of the 1994 data analysis to a study of annual reports for the same 18

20 period (Tilt, 2001). The results showed that no new information from that provided in the annual report was disclosed, and that even less detail was provided. The 1999 analysis showed that environmental reporting by these large, predominantly mining and chemical companies has certainly developed over the last five years, with a majority of companies now producing separate environmental reports. While the areas of reporting remain similar such as the emphasis on the various activities that affect the environment, most importantly the quality of reporting has improved, with companies now providing targets and performance data, rather than simply policies and description. There also appears to be some trend towards independent verification of reports. Limitations It is important to note that this study was restricted to large, public companies that operate in industries that have know environmental effects, such as mining and chemical production. It is therefore not possible to generalise these findings to other firms or industries. The sample was also relatively small and self selected, and much further research is warranted in order to confirm the preliminary results reported here. Future Research Directions Access to environmental information is now more easily gained than in the past, with all companies providing this information via their web sites. Such a change in accessibility to information by the general public, or any interested party, most likely explains the finding that other media, such as advertising and company brochures, seems to be decreasing. 19

21 This leads to a major implication that appears from the findings of this study. Most authors examining annual report disclosures include the caveat that there may be other media used for environmental disclosure purposes, and they provide various justifications for not examining these. However, this study suggests that except for the use of separate environmental reports or the company web site, this is most likely not the case. In fact, the use of the annual report for environment related disclosure may well diminish further as more companies produce separate reports and web pages, setting research into yet another direction. An interesting issue for further study is the effect that this trend has had on other social disclosures in the annual report, such as health and safety, community and customer relations, philanthropy and employee issues. 20

22 References Bansal P Environmental Management in the UK Food Retailing Sector, Templeton College Management Research Paper, 93/23, Oxford. Cairncross F Costing the Earth, The Economist Books Ltd., UK. Cowen S., L.B. Ferreri and L.D. Parker 1987 The Impact of Corporate Characteristics on Social Responsibility Disclosure: A Typology and Frequency-Based Analysis, Accounting, Organizations and Society, 12(2), pp Deegan C. & C. Blomquist 2000 Stakeholder Influence on Corporate Reporting: An Exploration of the Interaction between the World Wide Fund for Nature and the Australian Minerals Industry presented at the University of Adelaide School of Commerce Seminar Series, August. Freedman M. and B. Jaggi 1986 An Analysis of the Impact of Corporate Pollution Disclosures Included in the Annual Financial Statements on Investors Decisions, Advances in Public Interest Accounting, 1, pp Gray R.H Social and Environmental Accounting, Accountability and Reporting: New Wine in Old Skins or Silk Purses from Sow s Ears?, Accounting Forum, 17(4), March. Gray R.H., R. Kouhy & S. Lavers 1995a Corporate Social and Environmental Reporting: A Review of the Literature and a Longitudinal Study of UK Disclosure, Accounting, Auditing and Accountability Journal, 8(2), pp Gray R.H., R. Kouhy and S. Lavers 1995b Constructing a Research Database of Social and Environmental Reporting by UK Companies: A Methodological Note, Accounting, Auditing and Accountability Journal, 8(2), pp Gray R., D. Owen and C. Adams 1996 Accounting and Accountability: Changes and Challenges in Corporate Social and Environmental Reporting, Prentice Hall, UK. Guthrie J. and L.D. Parker 1990 Corporate Social Disclosure Practice: A Comparative International Analysis, Advances in Public Interest Accounting, 3, pp Harte G. and D. Owen 1992 Current Trends in the Reporting of Green Issues in the Annual Reports of United Kingdom Companies, in Owen D. (ed) Green Reporting, Accountancy and the Challenge of the Nineties, Chapter Eight, Chapman and Hall, UK. Milne M.J. & R.W. Adler 1998 Exploring the Reliability of Social and Environmental Disclosure Content Analysis, paper presented at the 2 nd Asian Pacific Interdisciplinary Research in Accounting Conference (APIRA), Osaka City University, Japan, August. Müller K. and D. Koechlin 1992 Environmentally Conscious Management, in D. Koechlin and K. Müller (eds) 1992 Green Business Opportunities: The Profit Potential, Pitman, UK, pp

23 Neu D., Warsame H. & Pedwell K. Managing Public Impressions: Environmental Disclosures in Annual Reports, Accounting, Organizations and Society, Vol. 23, No. 3, 1998, pp O Dwyer B. Corporate Social Reporting in Ireland: Legitimacy Denied?, paper presented at the School of Commerce Seminar Series, Flinders University, Adelaide Australia, 19 May, Polonsky M., R. Zeffane and P. Medley 1992 Corporate Environmental Commitment in Australia: A Sectorial Comparison, Business Strategy and the Environment, 1(2), pp Roberts C Environmental Disclosures in Corporate Annual Reports in Western Europe, in Owen D. (ed) 1992 Green Reporting, Accountancy and the Challenge of the Nineties, Chapter Seven, Chapman and Hall, UK. Shimell P Corporate Environmental Policy in Practice, International Journal of Strategic Management, Long Range Planning, 24(3), pp Teoh H. & G. Thong 1984 Another Look at Corporate Social Responsibility and Reporting: An Empirical Study in a Developing Country. Accounting, Organizations and Society, 9(2), pp Tilt C.A Environmental Policies of Major Australian Companies: Australian Evidence, British Accounting Review, 29(4), pp Tilt C.A The Content and Disclosure of Australian Corporate Environmental Policies, Accounting, Auditing and Accountability Journal, 14(2), pp Trotman K.T. & G.W. Bradley 1981 "Associations Between Disclosure and Characteristics of Companies". Accounting, Organizations and Society, 6(4), pp Zéghal D. and S.A. Ahmed 1990 Comparison of Social Responsibility Information Disclosure Media Used by Canadian Firms, Accounting, Auditing and Accountability Journal, 3(1), pp

24 Table 1 Summary of Environmental Characteristics Investigated General classifications: General policy statements Specifics (see below) Non environmental Specific Variables: Objective to report on environmental activities Environmental standards/targets Performance Data Sustainability Environmental management Environmental audit / verification Environmental law / compliance issues Environmental Activities (site or process related) eg: pollution; rehabilitation / site restoration; land/water/forests; waste & recycling; impact assessment; products; other environmental activities Other disclosures Table 2 Characteristics of Separate Environmental Reports No. of Companies Average No. Pages Environmental policy statement 12 (100%) 2.1 Environmental standards/targets 7 (58%) 1.5 Performance data 11 (92%) 6.7 Sustainability 4 (33%) 0.3 Environmental management 11 (92%) 1.3 Environmental audit / verification 7 (58%0 0.5 Environmental law / compliance 7 (58%) 0.7 Environmental activities 9 (75%)

25 Appendix Summary of Environmental Reports Obtained /99 Company Notes Company* Amcor Amcor On web in 1998/9 BHP BHP Hard copy Boral Boral No separate report in 98/99 (policy statement only on web site) ICI Orica/ICI Hard copy James Hardie James Hardie No report in 1999 MIM MIM Pdf downloaded from web in 98/9 Placer Pacific Placer Pacific On web in 1998/9 WMC WMC Pdf downloaded from web in 98/9 Acacia First report 1999 Goldfields Ltd First report 1998 Normandy First report 1999 Pasminco First report 1999 Rio Tinto First report 1998 Wesfarmers First report reports 12 reports * all reports obtained in hard copy in