Legal obligation of ESG reporting and the quality of environmental disclosure practices: the case of Moroccan listed industrial companies

PurposeThis paper aims to examine the impact of the legal obligation for environmental, social, and governance (ESG) reporting, introduced in 2019 by the Moroccan Capital Market Authority (AMMC), on the environmental disclosure practices of industrial companies listed on the Casablanca Stock Exchange (CSE).Design/methodology/approachAn analysis of the content of the ESG reports of the industrial listed companies on the CSE is carried out over the two years that frame the year of implementation of the AMMC circular, i.e. 2018 and 2020, to analyze the difference in the quality of their environmental disclosures using a conformity criterion based on the Environmental section (N degrees 300) of the "Global Reporting Initiative (GRI)" standards.FindingsThe results confirm the presence of a positive effect of the legal obligation for ESG reporting on the quality of environmental reporting of Moroccan industrial listed companies. However, the degree of compliance with the GRI framework remains incomplete.Originality/valueThis study helps to highlight the effectiveness of regulatory measures in improving the disclosure of relevant corporate environmental reporting of listed companies. The study also provides an overview of the progress made in implementing quality environmental reporting standards, specifically the GRI framework, in a developing country, namely, Morocco.