Investigating the reporting of waste in the food producers’ sector

Abstract

The study is done to determine the regard that food producing companies in South Africa have for reporting of waste management. The target group is the food producers’ sector of the JSE. Content analysis is the research method of choice to analyse annual reports. It is the most suitable method and is used regularly in the management accounting field. Non-financial disclosing requirements are mostly regarded as “recommended” and not regarded as an obligation. Companies report annually on their performance in their IR. The GRI document is one of a few recognised frameworks that are often used to enhance the quality of reporting. Non-financial disclosures are divided into groups consisting of social, economic, and environmental categories according to the GRI document. The environmental category contains a sub-heading to disclose on waste and the disposal thereof. There are various types and forms of waste and can therefore be grouped into different categories. Firstly, waste can be divided into hazardous and non-hazardous waste. Any liquid, solid or gas waste material that has the potential to be harmful or dangerous to the environment or any living organism, can be categorised as a hazardous waste material. The food producers’ sector has a few opportunities to reduce, reuse and recycle waste. Main food wastes of the food producers include packaging, date-labelling, logistics, and changing consumer behaviour to reuse and redistribute. The study provides insight of companies’ current reporting status using the GRI as a framework. Results are presented in percentages and comparative graphs. The results show that all companies do not use the GRI to conduct reporting. The need to regulate reporting is a growing need as only some of the companies regard the disclosing of non-financial as important. Discussions regarding waste are often available in the IR of the companies studied. All the involved companies in the sector had an IR or sustainability report. All reports were not conducted using the GRI framework. As a result, companies often neglected to report on the amount of waste measured in tons, displaying that all companies do not have the same regards for reporting on their waste. Recommending that without regulatory requirements or legislation to do sustainability reporting, the JSE listed companies will not develop the reporting culture that is suggested for transparency as desired by the latest King IV document. All the companies that were investigated had an IR. Only eight out of thirteen (61.5%) companies published a sustainability report. The GRI guidelines were used by only three of the thirteen (23.1%) companies to report. Companies that clearly indicated they are serious about environmental governance/ management were twelve of the thirteen (92.3%) companies. With regards to waste, only eight out of the thirteen (61.5%) displayed their high regard for waste management.