Comparative environmental disclosure practices: evidence from the UK and the USA

This study examines environmental reporting practices among leading firms in the United Kingdom (UK) and the United States of America (USA) by analyzing the top 50 firms from the Financial Times Stock Exchange 100 (FTSE100) and the Standard & Poor 100 (S&P100) indices during 2018 and 2019. Using volumetric metrics from annual and stand-alone reports, we assess disclosure patterns prior to the adoption of the revised Global Reporting Initiative (GRI) Standards and in anticipation of the International Financial Reporting Standards (IFRS) S1 and S2. Statistical analyses including correlation tests and both independent and paired sample t-tests reveal three key findings: (1) UK firms disclosed significantly less environmental content than US firms, suggesting strategic prioritization of other environmental, social, and governance (ESG) topics and alignment with national reporting expectations; (2) strong correlations among volumetric disclosure measures, coupled with statistically significant shifts over time, indicate that firms exhibit both consistency and adaptability in disclosure practices; and (3) significant differences in disclosure volumes between the two countries confirm the influence of regulatory systems, national cultures, and reporting norms. These findings support legitimacy theory and suggest that the environmental disclosure volume highlights the role of institutional and cultural contexts. They illustrate how multinational corporations navigate regulatory changes and prepare for new standards, offering a valuable perspective for evaluating corporate environmental accountability. This study underscores the continuing relevance of legitimacy theory and calls for further research into the drivers of voluntary sustainability reporting in a shifting regulatory landscape.