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Relationships between sustainability disclosure, environmental innovation and performance: an examination of practice within the Australian construction and demolition waste sector

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  • Daniel Rossetto

    (The University of Adelaide)

Abstract

Growth in sustainability reporting and disclosure by corporations have led to questions about how representative such information is of the real environmental performance of firms. There is doubt about whether disclosure has any effect on management and operational practice. Some scholars suggest sustainability claims are exaggerated or inaccurate, leading to broader concern about a phenomenon called greenwashing. This causes uncertainty among stakeholders about the impact firms have on the environment, and what they are doing about mitigating impacts and capitalising on opportunities. This paper explores disclosures and environmental impact mitigation practices across the Australian construction and demolition (C&D) waste ecosystem. It uses a combination of practitioner interviews and longitudinal analysis, evaluating financial reports and sustainability disclosures to explore the connection between disclosure practice and environmental innovation. It reveals that, if the purpose of innovation is to confer a competitive advantage, sometimes known as strategic corporate social responsibility (CSR), there is an incentive for firms to limit external distribution of such information. The paper therefore provides a new and interesting insight into the behaviour of firms. Whereas previously, concerns over greenwashing suggest that firms exaggerate sustainability performance, this paper reports evidence that much innovation remains confidential. If, as the Port Hypothesis would suggest, firms are innovating in response to higher environmental standards, there is a natural incentive to delay external communication until new products can be sold in the marketplace. There are implications for policymakers considering if and how to regulate sustainability disclosure, and for managers seeking to improve sustainability communication with stakeholders.

Suggested Citation

  • Daniel Rossetto, 2025. "Relationships between sustainability disclosure, environmental innovation and performance: an examination of practice within the Australian construction and demolition waste sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(4), pages 9427-9446, April.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:4:d:10.1007_s10668-023-04291-w
    DOI: 10.1007/s10668-023-04291-w
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    References listed on IDEAS

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