Shedding light on environmental disclosure: leveraging digital platforms for life cycle information transparency

In light of heightened interest and increasing pressure from stakeholders, companies have begun to disclose significant amounts of environmental information. Within the realm of environmental transparency, social media platforms have emerged as essential tools for sharing information about these sustainability efforts. Under the lens of voluntary disclosure theory, this study aims to investigate the level of life cycle assessment (LCA) information disseminated via Twitter by international companies and the factors influencing this level of disclosure.

This study employs a twofold methodology. Firstly, it conducts a dictionary-based content analysis of tweets disseminated in 2021 by 141 companies from the S&P 500 index operating in the energy (or energy utilities), basic materials, and industrial sectors to assess the level of LCA disclosure. Secondly, it employs regression analysis to investigate the factors influencing LCA disclosure.

This study reveals that companies make limited use of Twitter to convey LCA information, indicating a potential for enhanced utilisation of the platform for this purpose. Additionally, it shows that the most profitable companies, those that publish sustainability reports, and those with environmental certifications are more likely to disclose LCA information via Twitter. Conversely, online visibility does not appear to significantly influence LCA disclosure via Twitter.

This study provides valuable insights to the academic literature. In this regard, it contributes to the longstanding debate surrounding transparency in environmental matters by shifting the focus from traditional reporting methods to alternative communication tools like Twitter. In addition, it advances the knowledge of the factors shaping the dissemination of LCA information by companies. Lastly, it broadens the scope of application of the voluntary disclosure theory. This study also provides significant practical implications for companies and policymakers.