Towards the Regulation of Non-Financial Reporting: The Impact on Environmental Disclosure Within the Oil and Gas Sector

In response to growing stakeholder interest in social and environmental policies, recent European regulatory developments have made non-financial disclosure mandatory for large companies with more than 500 employees. Drawing on institutional theories, this study investigates the impact of the regulatory process on environmental corporate disclosure. To explore this phenomenon, a multi-case content analysis was conducted, supported by the application of Latent Semantic Analysis (LSA). Specifically, the impact of ongoing normative changes on the quantity and quality of environmental information is assessed by exploring the annual reports of four pivotal Oil & Gas companies. In addition, the study aims to determine whether a process of homogenisation exists in the release of environmental disclosure, either within a panel or across different entities. The results revealed an increase in the quantity of information released and a slight increase in disclosure quality. Moreover, no evidence of any disclosure homogenisation process was found as the disclosure provided preserved both time- and firm-specific information. Although at an early stage, this research reveals an overall positive effect of the regulatory process on environmental corporate disclosure.