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Do Global Reporting Initiative Reports Capture Planetary Boundaries‐related Information? An Empirical Investigation

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Abacus

Published online on

Abstract

["Abacus, EarlyView. ", "\nThe Global Reporting Initiative (GRI) has become a widely adopted sustainability reporting framework. This study aims to examine whether GRI reports can, should, and do address planetary boundaries. To do so, the study develops a framework and method to assess the extent to which planetary boundaries‐related information is captured in firms’ GRI reports. We first map relevant GRI Standards to each of the nine planetary boundaries. Next, we use the mapped GRI Standards to develop a set of keywords for each planetary boundary and employ a text mining technique to analyze to what extent the GRI reports lodged by ASX100 companies from 2016 to 2020 capture planetary boundaries‐related information. Results are validated against manual analyses and environmental, social, and governance (ESG) data. Our results show that some (albeit limited) planetary boundaries‐related information can be found in the GRI reports of ASX100 companies. Disclosure is higher for companies with core businesses operating in sectors with higher environmental footprints, such as those in the materials and energy sector. Overall, however, the ability of GRI reports to capture planetary boundaries‐related information in many critical areas is low. Researchers and decision‐makers may consider using the framework and method to identify links between GRI reporting and the concept of planetary boundaries and assess potential planetary boundary risks for decision‐making purposes. The framework can be further developed to foster the integration of planetary boundaries within the GRI Standards.\n"]