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Ex-Ante Impact Assessment of Sustainability Information–The Directive 2014/95

Author

Listed:
  • Cristian Carini

    () (Department of Law, University of Brescia, Contrada Santa Chiara, 50, 25122 Brescia, Italy)

  • Laura Rocca

    () (Department of Law, University of Brescia, Contrada Santa Chiara, 50, 25122 Brescia, Italy)

  • Monica Veneziani

    () (Department of Economics and Management, University of Brescia, Contrada Santa Chiara, 50, 25122 Brescia, Italy)

  • Claudio Teodori

    () (Department of Economics and Management, University of Brescia, Contrada Santa Chiara, 50, 25122 Brescia, Italy)

Abstract

Directive 2014/95, in force since 2017, is the first European step that requires undertakings to provide mandatory non-financial information. The regulation concerns sustainability information, such as environmental, social, and employee information, human rights, and anti-corruption and bribery matters, and the disclosure of diversity policies for board members. According to the theoretical framework of Integrated Assessment (IA), the study aims to examine the expected impact of the Directive within the analysis of empirical evidence before the mandatory approach. This allows, on the regulatory side, evaluation of the quality of the regulation, therefore, whether the law achieves its policy objectives (i.e., if it fills the gap in the sustainability disclosure) and, on the firms’ side, to identify where companies have to invest to meet the legal requirements. The oil and gas sector is chosen as a sample for the study, because it is one of the most advanced sectors in sustainability disclosure, and if the regulation could impact on this sector, it would be the same for less-informed ones. The findings reveal a fair level of completeness of non-financial information, however, there are some areas that have to be improved to achieve the requirements of the Directive. The results also show the presence of overlap between financial and sustainability reports. In conclusion, the quality of regulation is good because it will also increase sustainability disclosure in an advanced sector, such as oil and gas, even if there is an open point on the location of information; companies in this sector will have to invest more in environmental and employee information in future years to comply with the Directive.

Suggested Citation

  • Cristian Carini & Laura Rocca & Monica Veneziani & Claudio Teodori, 2018. "Ex-Ante Impact Assessment of Sustainability Information–The Directive 2014/95," Sustainability, MDPI, Open Access Journal, vol. 10(2), pages 1-24, February.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:560-:d:132904
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    References listed on IDEAS

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    Cited by:

    1. Adriana TIRON-TUDOR & Teodora Viorica FĂRCAŞ & Ioana DRAGU & Ecaterina Monica MOISE, 2020. "The Road to Transposing the Non-Financial Reporting EU Directive within the Romanian Context – The 2013-2020 Period," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 1(6), pages 63-72, June.
    2. Viorel Avram & Daniela Artemisa Calu & Valentin Florentin Dumitru & Mădălina Dumitru & Mariana Elena Glăvan & Gabriel Jinga, 2018. "The Institutionalization of the Consistency and Comparability Principle in the European Companies," Energies, MDPI, Open Access Journal, vol. 11(12), pages 1-24, December.
    3. Giorgio Mion & Cristian R. Loza Adaui, 2019. "Mandatory Nonfinancial Disclosure and Its Consequences on the Sustainability Reporting Quality of Italian and German Companies," Sustainability, MDPI, Open Access Journal, vol. 11(17), pages 1-28, August.
    4. Ho-Tan-Phat Phan & Francesco De Luca & Lea Iaia, 2020. "The “Walk” towards the UN Sustainable Development Goals: Does Mandated “Talk” through NonFinancial Disclosure Affect Companies’ Financial Performance?," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-20, March.
    5. Andrea Cardoni & Evgeniia Kiseleva & Simone Terzani, 2019. "Evaluating the Intra-Industry Comparability of Sustainability Reports: The Case of the Oil and Gas Industry," Sustainability, MDPI, Open Access Journal, vol. 11(4), pages 1-23, February.
    6. Alberto Sardi & Enrico Sorano, 2019. "Dynamic Performance Management: An Approach for Managing the Common Goods," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-22, November.
    7. Cristian R. Loza Adaui, 2020. "Sustainability Reporting Quality of Peruvian Listed Companies and the Impact of Regulatory Requirements of Sustainability Disclosures," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-22, February.
    8. Cristina Raluca Gh. Popescu, 2019. "Corporate Social Responsibility, Corporate Governance and Business Performance: Limits and Challenges Imposed by the Implementation of Directive 2013/34/EU in Romania," Sustainability, MDPI, Open Access Journal, vol. 11(19), pages 1-31, September.
    9. Fabio Caputo & Rossella Leopizzi & Simone Pizzi & Virginia Milone, 2019. "The Non-Financial Reporting Harmonization in Europe: Evolutionary Pathways Related to the Transposition of the Directive 95/2014/EU within the Italian Context," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-13, December.
    10. Lucia Biondi & Enrico Bracci, 2018. "Sustainability, Popular and Integrated Reporting in the Public Sector: A Fad and Fashion Perspective," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-16, August.
    11. Laura Saraite-Sariene & Juana Alonso-Cañadas & Federico Galán-Valdivieso & Carmen Caba-Pérez, 2019. "Non-Financial Information versus Financial as a Key to the Stakeholder Engagement: A Higher Education Perspective," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-19, December.
    12. Lara Tarquinio & Stefanía C. Posadas & Deborah Pedicone, 2020. "Scoring Nonfinancial Information Reporting in Italian Listed Companies: A Comparison of before and after the Legislative Decree 254/2016," Sustainability, MDPI, Open Access Journal, vol. 12(10), pages 1-22, May.

    More about this item

    Keywords

    sustainability reporting; non-financial information; corporate social responsibility; accounting regulation; Directive 2014/95; oil and gas;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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