Exploring a Nexus among Voluntary Environmental Sustainability Disclosure, ISO Certifications and Award, Sustainable Development Goals and Firm Performance

Abstract

AbstractCorporate environmental disclosure has always been a major topic in discussions about environmental concerns, such as depletion of natural resources, material consumption, water resources, GHG emission, waste management and environmental laws. The incorporation of environmental disclosure in the business sector is in its early stages, particularly in the spectrum of listed manufacturing companies. The literature exploring corporate environmental disclosure in the context of Pakistan is scant, the present study fills this gap on conducting research on two stages. In first stage, the study aims to explore the quantity and quality of corporate environmental disclosure in accordance with Global Reporting Initiative guidelines and in second stage, explore the linkage among environmental award, industry sensitivity, ISO 14001, sustainable development goal 13 and firm performance with environmental disclosure in Pakistan. The hypotheses of the study examined through System GMM model to quantify the interrelationships. Results indicate that award, sensitivity, ISO 14001 and SDG 13 shows a substantial relationship with corporate environmental disclosure. However, it exhibits no link with firm performance metrics. This study expands the existing literature by focusing on GRI dimensions and examine the relationship in the light of stakeholder and legitimacy theory. On these bases, recommendations have been made for regulatory bodies to take measures mandating environmental sustainability disclosures in Pakistan. These actions will empower businesses to align economic growth with environmental responsibility and fostering a more sustainable future for the nation.