ENVIRONMENTAL RISK DISCLOSURE PRACTICE IN MALAYSIA: AN EMPHASIS ON PLANTATION INDUSTRY

The aim of this study is to investigate the environmental-related risk management practices of publicly listed companies in Malaysia. A content analysis on the 2012 to 2014 annual and sustainability reports of all companies in the plantation industry has been carried out. Using a disclosure rating index, the quantity and quality of the environmental-related risks disclosures have been examined. The results reveal that the quantity and quality of disclosures are rather low and minimal. “Pollution and abatement-commitment” is found to be the most disclosed category and information, followed by “environmental conservation-energy”, whilst, “pollution and abatement–noise outdoor” is the least disclosed one. Generally, majority of the disclosures showed a decreasing trend. These findings generally put forward an initial idea that the plantation companies in Malaysia gave minimal attention to environmental risk reporting henceforth signify that disclosure practice is not critical to their sustainability agenda and value creation.