An investigation of the response of entities in the South African JSE ICT sector in 2005 to environmental sustainability reporting

Abstract

Pressure is on organisations the world over to report to their stakeholders, not only on their economic performance, but also on their environmental and social performance. In South Africa the King II code of corporate governance provides the guidance and impetus for this integrated “triple bottom line” sustainability reporting. The ICT sector in South Africa has been cited as lagging behind other sectors with regards to sustainability reporting, particularly in environmental sustainability reporting. Many ICT organisations would appear to be using their office and service based existence as reasons for having little or no impact on the environment. The study of the impacts of ICT on environmental sustainability in this research suggests that this is not necessarily the case. An assessment tool based on the internationally recognised Global Reporting Initiative Guidelines was developed in this research to investigate the level of environmental sustainability reporting in the South African ICT sector. The investigation showed the level of environmental sustainability reporting in the sector’s 2005 annual reports to be low. To get an indication of the level of reporting in more developed countries, a small sample of international ICT and service organisations was assessed using the tool, which showed significantly higher levels of environmental sustainability reporting. A set of ICT specific environmental sustainability performance indicators are proposed to enhance and encourage more significant levels of environmental sustainability reporting in South Africa.