Does Environmental Reporting Create Business Value: Experiences, Perceptions, and Framework Improvements
Authors
Andersen, Iben Klausholt ; Lindgreen, Nicholas Toft ; Bornæs, Magnus
Term
4. Term
Publication year
2025
Submitted on
2025-05-27
Pages
104
Abstract
This thesis examines how environmental reporting can create business value for companies in Denmark and how reporting frameworks could be improved to enhance that value. The study uses a qualitative, abductive approach, combining a review of 35 academic articles with 11 semi-structured interviews with company representatives and consultants. Abductive means the analysis moves back and forth between data and theory to refine explanations. Rather than viewing value only in financial terms, the thesis adopts a broader perspective informed by four lenses: Institutional Theory (organizations respond to rules and norms), Legitimacy Theory (companies seek societal approval), Stakeholder Theory (firms address the interests of those who affect or are affected by them), and the Resource-Based View (value arises from internal capabilities). The findings show that environmental reporting can create value by improving insight into internal processes, strengthening stakeholder relationships, aligning strategies, and supporting risk management. These theoretical perspectives help explain why companies report: to gain legitimacy, meet stakeholder demands, build reputation, and develop organizational capabilities. At the same time, many firms, especially small and medium-sized enterprises, experience current standards, particularly under the Corporate Sustainability Reporting Directive (CSRD), as complex and resource-intensive. Policy initiatives such as the Voluntary Sustainability Reporting Standards (VSME) for micro, small and medium-sized companies and the EU Omnibus proposal aim to simplify reporting and reduce burdens, but they also raise concerns about data quality, comparability, and transparency. The thesis argues that reporting frameworks should be more flexible, practical, and strategically purposeful, and it contributes to ongoing debates about how environmental reporting can generate business value while advancing environmental objectives.
Specialet undersøger, hvordan miljørapportering kan skabe forretningsværdi for virksomheder i Danmark, og hvordan rammerne for rapportering kan forbedres for at øge denne værdiskabelse. Studiet er kvalitativt og abduktivt og kombinerer et litteraturstudie af 35 videnskabelige artikler med 11 semistrukturerede interviews med virksomhedsrepræsentanter og konsulenter. Abduktivt betyder, at analysen bevæger sig frem og tilbage mellem data og teori for løbende at skærpe forklaringer. I stedet for kun at forstå værdi som økonomisk anvendes en bredere tilgang baseret på fire perspektiver: institutionel teori (organisationer reagerer på regler og normer), legitimitetsteori (virksomheder søger samfundets accept), interessentteori (virksomheder adresserer interesser hos dem, der påvirker eller påvirkes af dem) og resource-based view (værdi opstår af interne kapabiliteter). Resultaterne viser, at miljørapportering kan skabe værdi ved at give bedre indsigt i interne processer, styrke relationer til interessenter, understøtte strategisk retning og forbedre risikostyring. De teoretiske perspektiver forklarer også, at rapportering ofte drives af ønsket om legitimitet, krav fra interessenter, omdømme og udvikling af organisatoriske kapabiliteter. Samtidig oplever mange virksomheder, særligt små og mellemstore, at de gældende standarder, især under EU’s direktiv om bæredygtighedsrapportering (CSRD), er komplekse og ressourcekrævende. Politiske initiativer som Voluntary Sustainability Reporting Standards (VSME) for mikro-, små og mellemstore virksomheder og EU’s Omnibus-forslag har til formål at forenkle rapportering og lette byrder, men rejser også bekymringer om datakvalitet, sammenlignelighed og transparens. Specialet konkluderer, at rapporteringsrammer bør være mere fleksible, praksisnære og strategisk målrettede, og det bidrager til den igangværende debat om, hvordan miljørapportering kan skabe forretningsværdi samtidig med, at miljømål fremmes.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
Keywords