Does waste disclosure waste?

Abstract

This study investigates the motivations behind firms disclosing their waste production. Analyzing data from S&P 500 companies spanning from 2010 to 2018, we explore the influence of board characteristics on this corporate decision. Our findings reveal that firms with a higher proportion of female directors or independent directors, the establishment of a sustainability committee, and external verification of their sustainability reports are more inclined to disclose their waste production. Further examination demonstrates variations in these trends across firms with distinct characteristics. In particular, the impact of female directors proves especially significant for larger, younger firms with higher leverage, a greater number of employees, or firms compliant with the Global Reporting Initiative (GRI). Conversely, the presence of a sustainability committee appears to have a more pronounced impact on smaller, younger, and less profitable firms that do not comply with GRI standards.