Abstract:
The growing public agitation for companies operating in environmentally sensitive industries that have caused alarming pollution, global warming and other forms of environmental damage to mitigate adverse environmental impact of their operation necessitated their disclosure of environmental information. The extent to which Nigerian companies publish this information in annual report is largely unknown. It is for this reason that this study investigated the environmental disclosure practice by manufacturing companies listed on the Nigeria Stock Exchange (NSE). This is an aspect of the sustainable development reporting known as the Triple Bottom Line reporting or Triple-P. that is. profit [economics], planet [environment], and people [social] reporting. The study is a longitudinal study that covers a 12-year period (2004-2015). The population of this study is a total of 39 manufacturing companies. Descriptive statistics measures were used to summarise and analyse the level and trend of environmental disclosure. One Way ANOl'A was used to test whether the means of the level of environmental disclosure by the sampled companies for the 1 2 years are equal. Findings show that environmental disclosure is low but the steady increase over the 12-year period despite the absence of mandatory environmental disclosure standard or regulation in Nigeria suggests that listed manufacturing companies are responding to public pressure to mitigate environmental damage. This response to voluntarily environmental disclosure is to gain, maintain or defend their legitimacy to continue operation in the face of heightened international and local campaign, advocacy and regulations for mitigating environmental damage and ensuring environmental sustainability. It is recommended that the Financial Reporting Council of Nigeria (FRCN) should issue an accounting standard to sufficiently address environmental issues in annual reports. This will lead to mandatory disclosure of environmental information.
