Received:
2021-12-10 | Accepted:
2022-02-10 | Published:
2022-03-30
Title
On the relation between sustainability report and assurance standards in Brazilian financial institutions
Abstract
This study investigates the adherence to standards for assuring Sustainability Reports of financial Institutions listed on B3 stock market between 2016 and 2018. Drawing on 34 Brazilian institutions, we performed the content analysis of the criteria for sustainability assurance in relation to corporate governance by answering the question of how are the sustainability reports prepared by the financial institutions based on the corporate governance classification standards? We posit and find that among institutions investigated, 60.6% disclosed some type of Sustainability Report and only 50% (10 Institutions) performed sustainability assessment of the released reports. The assurance standards of the audited institutions follow 77.7% of the criteria identified as essential to integrity of such reports. This lens of reporting presents the constructs of probable choices aimed by the approaches among the financial institutions to show credibility and transparency. As a result, present a pattern of behaviours of these organisations towards a sustainability reporting. Overall, findings yield important insights on the criteria of sustainability assurance thus signaling a need for better monitoring scheme for voluntary disclosures.
Keywords
sustainability report, Global Reporting Initiative (GRI), assurance standards, corporate governance, financial market, financial institutions, Brazil
JEL classifications
M40
, M42
URI
http://jssidoi.org/jesi/article/950
DOI
Pages
298-316
Funding
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
https://doi.org/10.1590/S0104-07072006000400017
Search via ReFindit
https://doi.org/10.1108/S2043-052320160000010010
Search via ReFindit
B3 (2019). Estrutura normativa de Listagem. Base de dados. Available at http://www.b3.com.br/pt_br/regulacao/estrutura-normativa/regulamentos-e-manuais/listagem.htm
Search via ReFindit
Bakarich, K. M., Castonguay, J. J. & O'Brien, P. E. (2020). The use of Blockchains to enhance sustainability reporting and assurance. Accounting Perspectives, 19(4), 389-412. https://doi.org/10.1111/1911-3838.12241
Search via ReFindit
Ball, A., Owen, D. L., & Gray, R. (2000). External transparency or internal capture? The role of third-party statements in adding value to corporate environmental reports1. Business Strategy and the Environment, 9(1), 1–23. https://doi.org/10.1002/(sici)1099-0836(200001/02)9:1<1::aid-bse227>3.0.co;2-h
Search via ReFindit
Bardin, L. (1977). Análise de conteúdo. Lisboa: Edições 70.
Search via ReFindit
BC#Sustentabilidade (2020). Available online. BCB_Agenda_BChashtag_Sustainability_Dimension_Sep2020.pdf (accessed on 24 March 2021). https://www.bcb.gov.br/content/about/presentationstexts/
Search via ReFindit
Bebbington, J., Kirk, E. & Larrinaga-Gonzalez, C. (2012). The Production of Normativity: A comparison of reporting regimes in Spain and the UK. Accounting, Organizations and Society, 37(1), 78-94. https://doi.org/10.1016/j.aos.2012.01.001
Search via ReFindit
Bellen, H. M. (2005). Indicadores de sustentabilidade. São Paulo: Editora FGV.
Search via ReFindit
Boiral, O. & Heras-Saizarbitoria, I. (2020). Sustainability reporting assurance: Creating stakeholder accountability through hyperreality. Journal of Cleaner Production, 243(1) 118596. https://doi.org/10.1016/j.jclepro.2019.118596
Search via ReFindit
Brown, J. & Dillard, J. (2013). Critical accounting and communicative action: On the limits of consensual deliberation. Critical Perspectives on Accounting, 24(3), 176-190. https://doi.org/10.1016/j.cpa.2012.06.003
Search via ReFindit
Calixto, L. (2012). Relatório de Sustentabilidade na América Latina: Um estudo longitudinal. http://www.anpad.org.br/admin/pdf/2012_GOL471.pdf
Search via ReFindit
Campos, L. M. S., Sehnem, S., Oliveira, M. A. S., Rossetto, A. M., Coelho, A. L. A. L., & Dalfovo, M. S. (2013). Relatório de sustentabilidade: perfil das organizações brasileiras e estrangeiras segundo o padrão da Global Reporting Initiative. Available at https://doi.org/10.1590/S0104-530X2013005000013
Search via ReFindit
Caregnato, R. C. A., & Mutti, R. (2015). Pesquisa qualitativa: análise de discurso versus análise de conteúdo.
Search via ReFindit
Chi, L. C. (2009). Do transparency and disclosure predict firm performance? Evidence from the Taiwan market. Expert Systems with Applications. Expert Systems with Applications, 36(8), 11198-11203. https://doi.org/10.1016/j.eswa.2009.02.099
Search via ReFindit
Coad, A., Jack, L. & Kholeif, A. (2016), Strong structuration theory in accounting research. Accounting, Auditing & Accountability Journal, 29(7), 1138-1144. https://doi.org/10.1108/AAAJ-07-2016-2625
Search via ReFindit
Costa, A. P. P. D., & Wood Jr, T. (2012). Corporate frauds. Revista de Administração de Empresas, 54(4) https://doi.org/10.1590/S0034-75902012000400008
Search via ReFindit
Criado-Jimenez, I., Fernandez-Chulian, M., Husillos-Carques, F. J. & Larrinaga-Gonzalez, C. (2009). Compliance with Mandatory Environmental Reporting in Financial Statements: The Case of Spain (2001-2003). Journal of Business Ethics, 79(1), 245-262. https://doi.org/10.1007/s10551-007-9375-7
Search via ReFindit
Evain, C, & Imoniana, J. O. (2019). Assurance of sustainability environmental contingencies-experience from France. International Journal of Global Warming, 17(3), 315-345. https://doi.org/10.1504/IJGW.2019.098528
Search via ReFindit
FEE. 2006. Key issues in sustainability assurance: An overview. Brussels: Fédération des Experts Comptables Européens.
Search via ReFindit
Giddens, A. (1984). The constitution of society. Cambridge: Polity press.
Search via ReFindit
GRI, 2013. Global Reporting Initiative - G4 - Manual de implementação. Available at: https://sinapse.gife.org.br/download/global-reporting-initiative-g4-manual-de-implementacao
Search via ReFindit
IAASB (2003). International standard on assurance engagements 3000 - Assurance engagements other than audits or reviews of historical information. New York: International Federation of Accountants IFAC.
Search via ReFindit
IBGC (2019). Mudança do Paradigma de Sustentabilidade: O Papel do Conselho nas Questões ASG. Available at https://conhecimento.ibgc.org.br/Lists/Publicacoes/Attachments/24100/IBGC_Artigo%20Sustentabilidade%20nos%20Conselhos_vers%C3%A3o_final.pdf
Search via ReFindit
Imoniana, J. O., Domingos, L. C. & Soares, R. R (2012). Stakeholders' engagement in sustainability development and reporting: Evidence from Brazil. African Journal of Business Management, 6(42), 10634-10644. https://doi.org/10.5897/AJBM12.736
Search via ReFindit
Imoniana, J. O., Perera, L. C. J., Lima, G. F., & Antunes, M. T. P. (2011). The dialectic of control culture in SMEs: a case study International Journal of Business Strategy, 11(2), 39-48. https://www.ashesi.org/wp-content/uploads/2016/03/Country-Branding.pdf#page=43
Search via ReFindit
Imoniana, J. O., Soares, R. R. & Domingos, L. C. (2019). A review of sustainability accounting for emission reduction credit and compliance with emission rules in Brazil: A discourse analysis. Journal of Cleaner Production, 172(1), 2045-2057. https://doi.org/10.1016/j.jclepro.2017.11.217
Search via ReFindit
Kaur, A. & Lodhia, S. (2016), Influences on Stakeholder Engagement in Sustainability Accounting and Reporting: A Study of Australian Local Councils, Corporate Responsibility and Stakeholding, Developments in Corporate Governance and Responsibility, 10(1), 105-129.
Search via ReFindit
Kaur, A. & Lodhia, S. (2018). Stakeholder engagement in sustainability accounting and reporting: A study of Australian local councils. Accounting, Auditing & Accountability Journal, 31(1), 338-368. https://doi.org/10.1108/AAAJ-12-2014-1901
Search via ReFindit
Manetti, G., & Becatti, L. (2009). Assurance services for sustainability reports: Standards and empirical evidence. Journal of Business Ethics, 87(1), 289-298. https://doi.org/10.1007/s10551-008-9809-x
Search via ReFindit
Moura, D. (2007). Análise dos Fatores de convencimento do Juízo Brasileiro quanto à ocorrência de Fraude Contábil: um estudo de caso Múltiplo da Gallus, da Encol e do Banco Santos. Available at https://bibliotecadigital.fgv.br/dspace/handle/10438/4038
Search via ReFindit
Neuendorf, K.A. (2002). Content Analysis Guidebook. London: Sage Publications.
Search via ReFindit
Nikanorova, M., Imoniana, J.O. & Stankeviciene, J. (2020). Analysis of social dimension and well-being in the context of circular economy. International Journal of Global Warming, 21(3), 306-323. https://doi.org/10.1504/IJGW.2020.108678
Search via ReFindit
O'Dwyer, B., & D.L. Owen. (2005). Assurance statement practice in environmental, social and sustainability reporting: A critical evaluation. The British Accounting Review 37(2), 205-229. https://doi.org/10.1016/j.bar.2005.01.005
Search via ReFindit
Perego, P. & Kolk, A., (2012). Multinationals' Accountability on Sustainability: The Evolution of Third-Party Assurance of Sustainability Reports. Journal of Business Ethics, 2012, 110(2), 173-190. https://doi.org/10.1007/s10551-012-1420-5
Search via ReFindit
PwC (2016). As novas diretrizes do Global Reporting Initiative: G4. https://www.pwc.pt/pt/sustentabilidade/images/pwc-global-reporting-iniative-g4.pdf
Search via ReFindit
Sellami, Y. M., Hlima, N. D. B. & Jarboui, A. (2019). An Empirical Investigation of Determinants of Sustainability Report Assurance in France. Journal of Financial Reporting and Accounting, 17(2), 320-342. https://doi.org/10.1108/JFRA-02-2018-0019
Search via ReFindit
Silva, W. L. & Imoniana, J.O. (2021). Auditing as an effective mean of communication on environmental, social and governance issues in Brazil. Entrepreneurship and Sustainability Issues, 9(1), 103-122. https://doi.org/10.9770/jesi.2021.9.1(7)
Search via ReFindit
Tsalis, T. A., Malamateniou, K. E., Koulourioti, D. & Nikolaou, E. (2020) New challenges for corporate sustainability reporting: United Nations'2030 Agenda for sustainable development and the sustainable development goals. Corporate Social Responsibiolity and Environmental Managemen. 27(4), 1617-1629. https://doi.org/10.1002/csr.1910
Search via ReFindit
UN (2016). Organização das Nações Unidas. Transformando nosso mundo: Agenda 2030 para o Desenvolvimento Sustentável. Available at: https://www.undp.org/content/dam/brazil/docs/agenda2030/undp-br-Agenda2030-completo-pt-br-2016.pdf
Search via ReFindit
Zadek, S., & P. Raynard. (2004). The future of sustainability assurance. London: ACCA and AccountAbility.
Search via ReFindit