Biodiversity reporting by United Kingdom (UK)‐listed companies: A review of extent, content and readability of disclosures

This study examines biodiversity reporting by UK-listed companies. An instrument is developed, based on earlier research, and used to analyse biodiversity-related disclosures as either policy considerations or actions taken to conserve biodiversity. A mixed design is employed. The extent of reporting, information content of disclosures and their readability are used to provide an overarching perspective on how firms internalise biodiversity. Outliers are identified and their reports are examined interpretively to identify how leading reporters understand biodiversity as a policy imperative and factor it into their operational and managerial performances. This qualitative analysis highlights best practices that can be used by other entities interested in developing the accounting and management infrastructure necessary for reporting comprehensively on biodiversity. Best practices are, however, isolated and stand in stark contrast with how organisations are dealing with biodiversity on average. At the policy level, there is little on how biodiversity is defined and the rationale for wanting to protect biodiversity. When it comes to performance, few organisations are setting detailed biodiversity-related targets linked clearly to operational plans, risk assessments and key performance indicators. Post-implementation reviews of conservation initiatives are seldom conducted and biodiversity is not being factored into valuations, cost assessments and project appraisals. Understanding these limitations is timely given the international community's recent efforts to develop standards for extra-financial reporting. The results will be relevant for regulators, scholars and practitioners interested in advancing the quality of biodiversity reporting and factoring biodiversity into mainstream business discourses.