The impact of the EU nonfinancial information directive on environmental disclosure: evidence from Italian environmentally sensitive industries

Purpose To determine whether to entrust the European Union (EU) create a new nonfinancial reporting framework or endorse extant developed by Global Reporting Initiative (GRI), this study aims explore mandatory implementation of EU Directive positively impacted GRI-based environmental disclosure. Design/methodology/approach The authors compared pre- and post-EU disclosure 16 Italian environmentally sensitive companies. used an extended coding scheme unique scoring system compare quantitative qualitative changes in Findings analysis showed that quantity increased after adoption. most significant change was observed regarding topics explicitly required legislature. Additionally, soft information continued prevail over hard post-Directive period. While boosted level adherence GRI standards, companies disclosed could be easily mimicked (soft) instead objective measures verified (hard). In light evidence, endorsement standards valuable option for enhancing comparability transparency Originality/value This original proposed related indexes allow monitoring time. authors’ best knowledge, is one few justifies impact regulation (here Directive) on increase uses typology examine quality