Circular Economy Disclosure in Corporate Sustainability Report: The Case of Asia Companies in Sustainability Rankings Asri Suangga1, Rudy Hartanto2, Riyang Mardini3, Reza Kiki Wahyudin4, Nadiya5, R. Fahmi Rahmana6
(Accounting, Universitas Islam Bandung, Bandung, Indonesia)1, 2, 3, 4, 5, 6
Abstract
Circular Economy (CE) is becoming an increasingly important research and development topic in terms of sustainable financial reporting. However, preliminary evidence suggests that CE is not directly disclosed in corporate sustainability reports. The aim of this study is therefore to investigate how CE appears in the sustainability reports of companies listed in the sustainability rankings.
This study analyzes the presence of CE in five elements of corporate sustainability reporting, namely: (i) the Chief Executive Officer^s Message, (ii) non-financial materiality assessment, (iii) reference to the Sustainable Development Goals (SDGs) Framework, (iv) goals, and (v) indicators. Using qualitative and quantitative content analysis techniques, the report published by 50 companies listed in the Asia Sustainability Reporting Rating in 2022 was reviewed, not limited by sector.
The methodological approach was developed based on six components of content analysis: (i) sampling- (ii) unitizing- (iii) recordings- (iv) data simplification (reducing)- (v) drawing conclusions, which rely on construct analysis based on the chosen context (abductively inferring)- and (vi) narrating, as described by Krippendorff (2004). Unit coding extraction was carried out deductively by referring to circular economic terminology with the 9R approach (Refuse-Rethink-Reduce-Reuse-Repair-Refurbish-Remanufacture-Repurpose-Recycle).
