Biodiversity Reporting Practices and Corporate Governance in the Renewable Energy Sector in Canada

This study aims at assessing biodiversity reporting practices, and relationships between the level of biodiversity disclosure and company size or governance factors of renewable energy companies in Canada. This study further investigates the motivations of corporate biodiversity commitment in this sector. Overall, the result indicates that biodiversity disclosure is not popular in the renewable energy sector in Canada. The quality and data of biodiversity disclosure are limited with companies only disclosing less than 30% of GRI biodiversity disclosure indicators. Effectiveness of biodiversity management and mitigation actions are hardly measured and monitored without quantifiable performance indicators and baseline data before energy project construction or biodiversity protection measure implementation. In general, companies with more assets show a higher level of biodiversity disclosure compared to those with fewer assets which is supported by the marginally significant statistical result. Motivations behind biodiversity commitment are evaluated, with most companies claiming that they considered biodiversity due to ethical reasons and stakeholder relationships. However, the reports contained vague statements and a lack of biodiversity data. Given the critical link between energy transition and biodiversity loss, these contradicting claims and low biodiversity disclosure quality should be addressed in order to ensure transparency and effectiveness of biodiversity disclosure.