Center for Advancing Accounting

Evaluating the Effectiveness of the Global Reporting Initiatives Transition

• In Event: Impact of the Board, External Assurance and the Global Reporting Intitiatives on Sustainability Reporting

Abstract

This paper evaluates the effectiveness of the Global Reporting Initiatives (GRI) transitions from G3.1 to G4 and finally to the GRI standards by examining the changes in the quality of the disclosures of Australian mining and metals and financial services companies that apply the GRI framework in their sustainability reports. A quality disclosure index is developed incorporating both the quality of disclosures and an assessment of materiality. To analyse materiality, survey data was collected from 187 Australian companies. To develop the quality of disclosure score, a content analysis of sustainability reports was carried out using 12 Australian mining and metals companies (high environmental impact) and 12 Australian financial services companies (low environmental impact) that used the GRI standards from 2011 to 2019 (total of 213 reports). The results show that the GRI transitions have not been effective in improving the quality of disclosures on areas that were considered important to the companies examined.

Authors

• Chris Akroyd, Canterbury University

• Ramona Zharfpeykan, The University of Auckland