Greenhouse Gases and Circular Economy Issues in Sustainability Reports from the Energy Sector in the European Union

Agnieszka Janik, Adam Ryszko and Marek Szafraniec
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Agnieszka Janik: Faculty of Organization and Management, Silesian University of Technology, 41-800 Zabrze, Poland
Adam Ryszko: Faculty of Organization and Management, Silesian University of Technology, 41-800 Zabrze, Poland
Marek Szafraniec: Faculty of Organization and Management, Silesian University of Technology, 41-800 Zabrze, Poland

Energies, 2020, vol. 13, issue 22, 1-36

Abstract: The achievement of climate neutrality and eco-economic decoupling requires explicit measures to reduce greenhouse gases (GHG) emissions and to implement circular economy (CE) principles in practice. The energy sector is of particular importance in meeting these challenges because it exerts a substantial environmental impact. Therefore, it is extremely important to determine how essential GHG and CE issues are for companies operating in the energy sector. This can be reflected in corporate strategies, but it can also be disclosed to the public in sustainability reports. For this reason, this article presents a comprehensive analysis of sustainability reports based on the latest GRI Standards published by companies representing the energy sector in the European Union to determine the existence, quality, and specificity of reporting GHG and CE issues. The research results demonstrate that sustainability reports from the energy sector companies tend to focus more on GHG issues. They rarely point to actions related to CE, including actions enabling a reduction in GHG emissions, as those with high priority. In addition, declarations from the analyzed companies regarding intentions related to GHG and CE issues at the strategic level find a rather poor reflection in the description of specific actions in this area or in demonstrating appropriate indicators at the operational level. Considering the indicators included in the reports, the analyzed companies insufficiently describe the methods they use to gather, compile, and analyze information on the effectiveness of actions taken to address GHG and CE issues. As for the identification of potential determinants of the quality of reporting GHG and CE issues, the research results indicate that it is mostly influenced by external assurance and the report option. Sustainability reports submitted for external assurance and reports with the comprehensive option are significantly more developed than other types of reports. However, the clarity of reports with the core option is higher compared to the comprehensive group. In addition, it was indicated that the clarity of stand-alone reports is higher compared to other types of reports.

Keywords: sustainability reporting; energy sector; greenhouse gases; circular economy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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