Materiality assessment in environmental disclosure quality: a quantitative analysis on European energy companies

Abstract

This Work Project examines Environmental Disclosure Quality (EDQ) in the European Energy industry. Based on data hand-collected from the companies’ reports, this research highlights the importance of materiality assessment in defining EDQ. A comparative analysis revealed significant differences in EDQ across countries, whereas no significant associations could be found regarding profitability, sector, type of report, and state participation. Moreover, evidence suggests that firms may engage in impression management with a negative relationship observed between the number of images and EDQ but also environmental performance. These results emphasize the need for harmonization in disclosure practices to enhance transparency and accountability.