Recent developments in environmental reporting : a European and Maltese perspective

Abstract

Purpose: This study seeks to understand the developments being made with regards to environmental reporting, principally on a European level. It gives an insight into the European directive on non-­‐financial disclosure and considers the issue of the relevance of such reporting in a country like Malta. Design: A qualitative approach was taken to achieve the objectives of this study. In depth interviews were carried out with key market participants, both local and European, to be able to gather well-­‐rounded information and an analysis of the major developments in this field was made. Findings: This study demonstrated that several major developments are in fact being made, both by individual countries and by the European Union, with the directive being one of principal advancements. It was found that environmental reporting is still in its infancy in Malta, and perceived as a threat. This contrasts with international scene that views reporting as an opportunity. A culture shift is needed in Malta to convert this possible ominous perception into an opportunity. Conclusions: Despite our size, environmental reporting can be of relevance for local firms particularly when it is entrenched into the reporting process and used beyond its marketing capacity. Several leaps forward have been made in environmental reporting, with the European directive being simply one of many more to come. Implications: This study reveals that the non-­‐financial side of accounting is gaining a lot of importance, especially when it comes to the environment. Major developments have been made with more ahead, making it imperative for industries and the accountancy profession to accept and take on these changes.