The Impact of GRI-Compliant Sustainability Reporting on CO₂e Emissions, an Analysis of Environmental and ESG Performances

Abstract

This study investigates the relationship between sustainability reporting practices aligned with the Global Reporting Initiative (GRI) standards and CO₂e emissions reduction across six companies operating over two industrial sectors. Grounded in two primary hypotheses, the research aims to assess whether there is a discernible trend toward GRI-compliant reporting and whether these reporting practices are associated with CO₂e emissions reductions as part of effective sustainability communication. Utilizing a longitudinal analysis of ESG scores, CO₂e emission levels, and annual changes from 2019 to 2022, the study examines the dynamics of sustainability reporting within the context of environmental performance. Preliminary observations indicate that firms from the oil and extractive industries have made strides in enhancing their ESG scores, which may suggest a potential link between structured sustainability reporting and improved environmental outcomes. However, the analysis also reveals variability among companies, with some exhibiting inconsistent emission trends despite stable ESG scores. This variability raises questions about the strength and universality of the relationship between GRI-aligned reporting and emissions reductions. The study posits that industry-wide incentives and regulatory frameworks may be essential for fostering more consistent adherence to GRI standards across different sectors. Future research directions are suggested to explore deeper mechanisms and variations across industries to gain a comprehensive understanding of the broader impacts of GRI standards on environmental outcomes.

Keywords

• sustainability reporting
• corporate social responsibility (csr)
• global reporting initiative (gri)
• corporate compliance
• co2e emissions