A master programme thesis from Aalborg University
Does Environmental Reporting Create Business Value: Experiences, Perceptions, and Framework Improvements
Author(s)
Term
4. Term
Publication year
2025
Submitted on
2025-05-27
Pages
104 pages
Abstract
This thesis investigates how environmental reporting contributes to creation of business value for companies operating in Denmark, and how the environmental reporting frameworks can be improved to enhance such value creation. This qualitative and abductive study is based on a literature study of 35 academic articles and 11 semi-structured interviews with company representatives and consultants. While existing literature often defines value in financial terms, this study applies a multifaceted understanding of value through a conceptual framework developed from Institutional Theory, Legitimacy Theory, Stakeholder Theory, and the Resource-Based View. Findings indicate that environmental reporting can create value by enhancing insight into internal processes, strengthening stakeholder relations, supporting strategic alignment, and improving risk management. The theoretical perspectives show how reporting is often driven by legitimacy gains and how value can manifest through stakeholder demands, reputation, and organisational capabilities. However, many companies, particularly small and medium-sized enterprises, find current standards, especially under CSRD, overly complex and resource-intensive. Recent policy developments, such as the Voluntary Sustainability Reporting Standards (VSME) for Micro, Small and Medium-Sized companies and the EU Omnibus proposal, are central to this discussion. These initiatives aim to simplify reporting and reduce burdens, but also raise concerns about data quality, comparability, and transparency. The thesis concludes that reporting frameworks should be more flexible, practice-oriented, and strategically purposeful. It contributes to ongoing debates on how environmental reporting can generate business value while supporting environmental objectives.
Keywords
Documents
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