Environmental information disclosure: a proposed indicator based on experts’ perceptions

Abstract

This paper is aimed at listing environmental attributes, according to the degree of importance of disclosure, to compose a truly Brazilian indicator that assesses the quality of environmental information disclosure. “Environmental accounting/sustainability” experts and environmental disclosure attributes were selected, based on Brazilian and international studies. Through Delphi rounds, the experts outlined the list of the most relevant attributes to compose the indicator. The Environmental Disclosure Indicator – EDI consists of ten attributes than combine practicality and representativeness of the quality of environmental information disclosure. The results revealed a high degree of importance and, therefore, a greater weight of qualitative attributes, such as “Environmental Impacts of Products and Processes” and “Information about Residues”. The study contributes by revealing “what” should be disclosed prioritarily, that is, which are the essential environmental attributes. It contributes to verify whether the amount of environmental information companies have disclosed have necessarily meant disclosure quality. As it provides an instrument to quantify the quality of environmental disclosure, the study permits further research about the association between this disclosure and other company aspects, such as performance and corporate governance.