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CERTIFIED MANAGEMENT ACCOUNTANT 23

(Sameera and Wijethunga, 2013). Table 01: Environmental disclosure practices – Sector-wise analysis
The main objective of this study is to
identify the practices of environmental
reporting among highly environment-
sensitive companies listed in the
Colombo Stock Exchange. Chemicals Chemical and Pharmaceutical Construction and Power and Energy Manufacturing
and pharmaceuticals, construction Engineering Plantation
and engineering, power and energy, Total
plantation, and manufacturing sectors
were selected due to their environment Number of companies 55 8 4 8 13 22
sensitivity nature out of 20 industries of Number of observations 220 32 16 32 52 88
CSE. Fifty-five companies were selected Number of companies which 2 0 0 0 1 1
as the sample of study using random satisfied all criteria
sampling method. Annual reports for Number of companies which 34 6 0 4 0 24
four consecutive financial years from satisfy none of criteria
2015 to 2018 of each company were
used to analyze their environmental
disclosure practices. Global Reporting The findings given in Table 01 show manufacturing companies. Only two
Initiative’s (GRI) Standards 2019 was that thirty-four companies representing companies have disclosed all the criteria
followed to build up Environmental 15.455% of the sample did not disclose given in the index. These companies
Disclosure Index (EDI). The GRI any criteria in the index. Among represent the plantation sector and
standards create a common language them, six companies represent the the manufacturing sector. Most of the
for organizations whether they are chemical and pharmaceutical sectors, companies have not disclosed any
large or small, private or public to another four companies represent environmental information in their
report on their sustainability impacts the power and energy sectors and the annual reports.
in a consistent and credible way. This remaining twenty-four companies are
enhances global comparability and
enables organizations to be transparent
and accountable. GRI standards 301 – Table 02: Descriptive statistics of environmental disclosure
308 were selected for this study which is index - Sector wise analysis
related to the environment information. Number of Total Chemical Construction Power Plantation Manufacturing
items
Environmental disclosure index consists disclosed sample and and and
of thirty items of disclosure under the Pharmaceutical Engineering Energy
above eight categories. Minimum 30 11 10 29 30 30
2
0
1
1
0
0
Maximum
“ Mean 6.456 2.5 3.8 8.9 6.0 5.2
3
5
6
8
4
9
6
3
3
3
Median
2.5
SD
7.5
The environmental
disclosure in On an average, companies of environmental disclosure is low in
Sri Lankan listed companies. Relatively,
disclosed only six items out of thirty
Sri Lankan context environmental disclosure items given companies in power and energy sector
in the GRI index. It is about 20%, which
and plantation sector are disclosing
is still low, but it is a significantly lower level. Aruppla & more environmental information.
Perera, (2013) also found that the level
is on a growing
stage. Figure 01:- Mean value of environmental disclosure index
Chemical & Pharmaceutical
Findings and Construction and Engineering

discussion Power & Energy
Descriptive statistics and trend analysis Plantation
are used to identify the environmental
disclosure practices.

Manufacturing

www.cma-srilanka.org | Volume 06 -No. 2 - September 2021