An analysis of the sustainable disclosure of carbon tax in the ferroalloy industry

Abstract

Climate change is undoubtedly a serious challenge facing the world today, and as a result the preservation of the environment is at the top of the agenda for the international community and national governments. Integrated reporting is a global phenomenon driven by the necessity for better information for shareholders and stakeholders. Sustainability reports in South Africa have gained momentum since King III was released in 2009. The purpose of this study is to determine if Ferroalloy manufacturers disclose their carbon emissions in their integrated reports. A literature study was done and content analysis was used to analyse the integrated reports of Ferroalloy manufacturers. On average the integrated reports of Ferroalloy manufacturers comply 41% according to GRI requirements. Governance related points measured complied on average 51%, while internal standards measured 71%. 86% of organisations make use of external standards to report their emissions on. Direct emissions obtained on average 42% as per GRI G4 requirements, while indirect emissions obtained a score of 50%. Emissions that may occur as a result of the usage of organisations products were reported on at only 11% according to the GRI G4 requirements.