Information on environmental protection and annual reports of oil companies

Abstract

Motivation: The stakeholders of annual reports want to obtain as much information of sufficient quality as possible in order to take appropriate decisions. These reports include information on a company structure and should reflect its true image. They also contain environmental information concerning the way a company affects, develops and manages the natural environment. This information is of great importance in oil companies which operational activity is connected with significant environmental risk. Therefore, they should thoroughly inform stakeholders of their impact on the environment. In practice, however, environmental information is presented differently. The thesis can be formulated that data presented in financial statements does not satisfy all information needs of stakeholders.

Aim: The purpose of the article is to prove that: (1) information on the natural environment published in the reports of oil companies is of great significance to stakeholders, (2) the amount and quality of environmental information included in the annual reports of oil companies are insufficient for stakeholders, (3) annual reports of oil companies differ considerably in terms of their informative content.

Results: Defining the disadvantages of current financial statements regarding ecological information and assessment of the presentation of environmental information in the annual reports of selected oil companies.