Sustainability performance disclosures: The case of independent power producers

Independent power producers (IPPs) investing across borders represent a crucial sector that produces an adverse impact on greenhouse gas emissions (GHG). The main purpose of this study is to articulate issues pertinent to sustainability performance among contemporary IPPs which seek funding from the capital markets. A framework employing a sustainability performance scorecard is developed based on an interdisciplinary literature review that spans the fields of corporate finance, financial reporting and sustainability. By examining the sustainability performance as disclosed by three cross-border IPPs from the U.S., Europe and the emerging economy of Asia, this comparative case study unveils the current weaknesses in comparability, relevance and usefulness in disclosures among the IPPs. It points out potential information asymmetry to decision making of the primary stakeholders who seek to invest in renewable and sustainable energy while countering short-termism over financial returns. A concerted policy effort on disclosures about sustainability performance would be crucial to channeling effective private investments into the development of renewable and sustainable energy.