The effect of blue accounting on South African Ocean-Based companies’ environmental performance: evidence from Johannesburg Stock Exchange listed companies.

Abstract

Marine resources are vital for economic, social, and recreational use but are often undervalued because the measures for assessing and reporting on their usage are limited. Blue accounting seeks to systematically identify, measure, value, recognise, and report on marine resource use and impact. This study examines blue accounting practices in South African marine-sensitive companies, such as those in fishing, aquaculture, and logistics, listed on the Johannesburg Stock Exchange (JSE). The research assesses factors influencing blue accounting adoption and the way blue accounting disclosures in integrated reports impact environmental performance. Stakeholder, signalling, and legitimacy theory underpin this study. A hybrid methodology combining qualitative and quantitative research, including scoping reviews, correlational analysis, pooled regression, and content analysis, was used to identify factors influencing blue accounting adoption and how blue accounting influences environmental performance. Key factors influencing blue accounting adoption include stakeholder pressure, alignment with sustainable development goals, and a lack of frameworks and regulatory guidelines. Significant positive correlations were found between environmental performance and firm size (coefficient: 16.07; p-value: 0.00), adherence to environmental guidelines (coefficient: 7.48; pvalue: 0.02) and reporting costs (coefficient: 6.35; p-value: 0.01). Conversely, environmental obligations (coefficient: -3.92; p-value: 0.02) and firm age (coefficient: -0.18: p-value: 0.00) negatively correlated with performance, reflecting legacy challenges. Findings suggest that blue accounting enhances environmental performance through transparency and accountability. However, inconsistent regulatory enforcement and lack of uniform frameworks hinder adoption, highlighting the need for stronger oversight and standardised practices. The findings align with stakeholder, signalling, and legitimacy theories, demonstrating that blue accounting disclosures are valuable for meeting stakeholder expectations and legitimising corporate actions. Marine-sensitive companies are encouraged to adopt sustainability guidelines, like the Global Reporting Initiative (GRI). At the same time, policymakers should develop a blue accounting framework and enforce compliance to promote sustainable marine practices. This study contributes to the field of blue accounting, providing a foundation for future research on sustainable marine resource management in corporate reporting.