**Table 20: Significant indicators, regressions, Probit model**

|**Indicator**|**GRI G4**|**GRI Indicator**|**_MNE_**|**_Large_**|
|---|---|---|---|---|
|**type**|**Metric**||||
|Labor and<br>social|G4‐LA16|Number of grievances about labor practices filed, addressed, and resolved through<br>formalgrievance mechanisms|+|not sign.|
||G4‐HR9|Total number and percentage of operations that have been subject to human rights<br>reviews or impact assessments|+|not sign.|
||G4‐LA8|Health and safetytopics covered in formal agreements with trade unions|‐|+|
||G4‐EC5|Ratios of standard entry level wage by gender compared to local minimum wage at<br>significant locations of operation|‐|+|
|Environmental|G4‐EN32|Percentage of new suppliers that were screened usingenvironmental criteria|+|+|
||G4‐EN33|Significant actual and potential negative environmental impacts in the supply chain and<br>actions taken|<br>+|+|
||G4‐EN7|Reductions in energyrequirements ofproducts and services|‐|+|
||G4‐EN10|Percentage and total volume of water recycled and reused|‐|+|
||G4‐EN26|Identity, size, protected status, and biodiversity value of water bodies and related<br>habitats significantlyaffected bythe organization’s discharges of water and runoff|‐|+|
|Governance|G4‐SO4|Communication and trainingon anti‐corruptionpolicies andprocedures|+|+|
||G4‐SO6|Total monetary value of financial and in‐kind political contributions by country and<br>recipient/beneficiary|+|not sign.|
||G4‐EC4|Financial assistance received fromgovernment|‐|not sign.|

Source: Own calculations, based on Tables 14 to 19. Note: Variables refer to 2015 GRI data (see section 2.2).

Third, focusing on environmental indicators, the probability of MNEs reporting on specific environmental issues regarding their supply chain is significantly higher than for non‐MNEs. By contrast, MNEs underreport with regard to reductions in energy requirements of products and services as well as information related to water recycling and impacts of water usage on habitats and water sources than non‐MNEs. Finally, focusing on governance, multinationals are significantly more likely to disclose information related to anti‐corruption initiatives and to reveal the value of political contributions than non‐MNEs. By contrast, the probability of disclosure for financial assistance received from government is significantly lower for MNEs than for non‐MNEs.

Several observations can be made. First, MNEs report more than non‐MNEs on six indicators which can be grouped into three thematic areas, namely (i) indicators related to labor and human rights practices, (ii) indicators regarding the environmental impacts in the supply chain, and (iii) indicators related to corruption. This suggests that multinationals are targeted by specific sustainability reporting instruments such as the OECD Guidelines for Multinational Enterprises, in particular for those indicators for which company size has no explanatory power (indicators related to labor and human rights practices and monetary value of political contributions).<sup>14</sup> Second, MNEs report less than non‐MNEs on their wages or health and safety topics covered in formal agreements with trade unions. It is an established fact that multinationals are more productive than non‐ multinationals and thus are able to pay higher wages. It could therefore be possible that information related to wages or health benefits is not considered material by MNEs as their compensation and benefit

> 14 The OECD Guidelines for Multinational Enterprises are the most comprehensive set of government‐backed recommendations on responsible business, providing voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation (see http://mneguidelines.oecd.org/about.htm).

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