Previous studies have already reported mixed results on the relationship between corporate environmental disclosures and environmental performance. The purpose of this paper is to identify variables that impact significantly the level of environmental disclosure practices provided by Dutch listed firms. A content analysis scorecard is used to test the mentioned level. The scorecard is based on the Global Reporting Initiative sustainability reporting guidelines, developed by Clarkson, Li, Richardson, and Vasvari (2008) in collaboration with an environmental disclosure expert. It is one of the first studies that have applied this comprehensive scorecard. This method is valuable to users who seek to assess the firms' true environmental exposure. Furthermore, there are no published studies that examine variables in which it is possible to find a significant impact on the disclosure practices of Dutch companies. The environmental information for 2008 was collected from a sample of 28 Dutch listed companies, which ones represent 90% of the total market capitalization on the Dutch stock exchange, and the selected variables that could affect the level of environmental disclosure are firm size, industry membership and firm profitability. The statistical tests proved that firm size and industry membership are significantly and positively associated with the level of environmental disclosure. This result is consistent with prior research that has used other measures of environmental disclosure. However, profitability is not statistically significant related to the level of environmental disclosure. This may be due to the impact of the financial crisis that has arisen in 2007/2008.
Global Reporting Initiative; Environmental disclosure; Sustainability reporting; The Netherlands; Content analysis
