Relationship between environmental disclosure and environmental performance

The society has been demanding from companies a more sustainable performance due to the fact that most of the environmental problems are caused by them. In this sense, companies are expected to improve their performance by evidencing it. This study aims to analyze the relationship between environmental disclosure and environmental performance. The research sample includes 16 companies from highly polluting sectors. To measure environmental performance, 3 indicators from the Refinitiv Eikon (R) database were used, whereas to measure environmental disclosure, 10 criteria were analyzed, with one point being attributed for each item highlighted in the annual or sustainability report, resulting in a score per company, which should be a maximum of 10 points. To unify the 3 environmental performance indicators, the ADRIANA method was used, and to analyze the relationship between environmental disclosure and environmental performance, linear regression was used. The results indicate that companies tend to evidence more information about energy use and/or energy efficiency, water use and/or water efficiency, and waste generation and/or management, but evidence less about the environmental impacts of products and services and the release of toxic products (land, water and air) and other discharges. We conclude that there is a positive and significant relationship between disclosure and environmental performance. These results seek to contribute to business management by indicating the relevance of sustainable actions as well as their disclosure, actions that can strengthen organizations and their positioning in the face of competition.