Volume 20 Issue 1, April 2025

 

ARTICLE INFO
Article History:
Received: 9 April 2024
Accepted: 17 April 2025
Published: 30 April 2025

ASIA-PACIFIC MANAGEMENT ACCOUNTING JOURNAL. VOL. 20 ISSUE 1

FROM COMPLIANCE TO SUSTAINABILITY: THE IMPACT OF THE NZX GOVERNANCE CODE ON ENVIRONMENTAL REPORTING

Gayani Hewagama, Liz Rainsbury and Wajira Dassanayake

Business School, Unitec Institute of Technology, Auckland, New Zealand


ABSTRACT

This paper examined changes in environmental reporting following the introduction of the New Zealand Stock Exchange (NZX) Corporate Governance Code, which recommends reporting of environmental, social, and governance (ESG) information. The environmental disclosures of the top 50 NZX companies from 2016–2020 were analysed, comparing reporting pre-(2016–2017) and post-(2018–2020) introduction of the ESG guidance. Univariate and multivariate statistical analyses were used to examine changes in environmental reporting over these periods. The ESG guidance significantly improved environmental reporting, but not all companies disclosed information, indicating the need for stronger regulations. The study examined the trend in environmental disclosures, before and after implementation of the ESG guidance note, in the context of New Zealand's transition to mandatory climate reporting for listed companies. The study provides evidence of listed companies responding to listing requirements to provide greater transparency to capital markets regarding the environmental impact of their operations on the environment. The most frequently reported environmental disclosure was greenhouse gas emissions, widely recognised as a primary contributor to climate change.

Keywords: Environmental Reporting, ESG Guidance Note, Greenhouse Gas Emissions, Legitimacy Theory

Corresponding Author: Gayani Hewagama; Business School, Unitec Institute of Technology, Auckland, New Zealand; Email: ghewagama@unitec.ac.nz