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Journal articles on the topic 'Voluntary emissions disclosure'
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1
Kholmi, Masiyah, Attika Dewi Shaqinnah Karsono, and Dhaniel Syam. "Environmental Performance, Company Size, Profitability, And Carbon Emission Disclosure." Jurnal Reviu Akuntansi dan Keuangan 10, no. 2 (August 3, 2020): 349. http://dx.doi.org/10.22219/jrak.v10i2.11811.
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This study aims to examine the effect of environmental performance, company size, profitability on disclosure of carbon emissions in non-service companies listed on the Indonesia Stock Exchange (IDX). The population of this study used non-service companies listed on the Indonesia Stock Exchange (IDX) in 2017. The research sample was 34 companies selected through the purposive sampling method. The data collection technique using documentation method. Data analysis techniques using multiple regression analysis with statistical tools used are SPSS V.24. The results showed that the company's environmental performance did not influence the company to conduct carbon emission disclosure. by obtaining a PROPER rating, it does not guarantee the company will disclose carbon emissions properly. While company size and profitability, have no effect on carbon emission disclosure, because companies still choose to make other disclosures that can increase their legitimacy in the eyes of the public. Companies consider carbon emission disclosure as not yet able to add value to companies and the nature of emissions disclosures carbon which is still in the form of voluntary disclosure. This research contributes to disclosure of carbon emissions from company activities in the annual report and the company can prevent and reduce carbon emissionsc.
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Giannarakis, Grigoris, George Konteos, Nikolaos Sariannidis, and George Chaitidis. "The relation between voluntary carbon disclosure and environmental performance." International Journal of Law and Management 59, no. 6 (November 13, 2017): 784–803. http://dx.doi.org/10.1108/ijlma-05-2016-0049.
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Purpose The purpose of this study is to investigate the effect of environmental performance on the environmental disclosure level. Design/methodology/approach Carbon disclosure leadership index score is considered as a proxy of carbon disclosure level, while greenhouse gas (GHG) emissions as a proxy of environmental performance. In addition, six control variables are used: return on assets, financial leverage, company’s size, CEO duality, board size and percentage of independent directors on board. The sample comprises 102 companies from a population of Standard & Poor’s 500 (S&P 500) companies over a five-year period, 2009-2013. Findings Results revealed that higher pollution levels in terms of GHG emissions affect negatively the dissemination of carbon disclosure information, suggesting a positive relationship between environmental performance and environmental disclosure level. In addition, companies with good environmental performance in relation to their average environmental performance disseminate more carbon information in their disclosures. Thus, the carbon disclosure level is indicative of environmental performance consistent with the voluntary disclosure theory. Practical implications The managerial behavior regarding the relation of environmental disclosure and environmental performance is explained. In addition, the findings should be of use to those investors interested in finding carbon emission information so that they assess investments and evaluate their current portfolios in terms of environmental sustainability. Originality/value It is intended to ascertain the reliability level of carbon disclosure regarding carbon emission information by incorporating the carbon disclosure leadership index score and GHG emissions.
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Lee, Jaehong, Suyon Kim, and Eunsoo Kim. "Voluntary Disclosure of Carbon Emissions and Sustainable Existence of Firms: With a Focus on Human Resources of Internal Control System." Sustainability 13, no. 17 (September 5, 2021): 9955. http://dx.doi.org/10.3390/su13179955.
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The purpose of this study is to examine the relationship between the voluntary disclosure of carbon emissions and firm value. In addition, we examine whether the human resources of the internal control system affect the relationship between the voluntary disclosure of carbon emissions and firm value with data from the Korean stock market from 2014 to 2019. This study shows that the firms that voluntarily disclose information on carbon emissions increase their value. Additionally, the sufficient number and working experience of internal control personnel in each accounting, financing, and information technology department positively affects the relationship between voluntary disclosure and firm value. We additionally find an effect of the awareness level on climate change on firm value. That is, firms that are active on climate change rather than merely disclosing information. Finally, we find the positive role of Environment, Social and Governance (ESG), implying a superior management environment that leads to better disclosure practices.
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Rahmadhani, Sari, and Rahayu Indriyani. "Impact of Emissions Intensive Industries And Financial Distress On Voluntary Carbon Emission Disclosure." AKRUAL: Jurnal Akuntansi 11, no. 1 (October 15, 2019): 1. http://dx.doi.org/10.26740/jaj.v11n1.p1-8.
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This study aims to examine factors affecting voluntary disclosure of carbon emissions. Factors affecting the disclosure of voluntary carbon emissions consist of emissions-intensive industries and financial distress represented by leverage. The sampling method used is pruposive sampling with the following criteria, companies that have received a corporate governance rating index during the observation period and published annual reports during the observation period (2013-2016). Based on the corporate governance index determined 66 sampled research. The analysis technique used to test the hypothesis of this research is multiple linear regression analysis. The results of this study indicate that emissions-intensive industries have a significant positive impact on the disclosure of voluntary carbon emissions. Financial distress has a significant negative impact on voluntary carbon disclosure.
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Triansyah, Muhammad Bayu, Mohamad Adam, and Tertiarto Wahyudi. "Carbon Emission Disclosure in Indonesia’s Manufacturing Companies." Accounting and Finance, no. 3(89) (2020): 148–54. http://dx.doi.org/10.33146/2307-9878-2020-3(89)-148-154.
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In Indonesia, the government invites business actors to jointly reduce greenhouse gas emissions through disclosure of carbon emissions. Disclosure of carbon emissions in Indonesia is still voluntary (voluntary disclosure), so not all companies disclose this information in their reports. The purpose of this article is to assess the impact of factors such as company size, profitability, company growth, environmental committees, and gender diversity on carbon emission disclosure by Indonesia’s manufacturing companies. For the study, the authors selected 16 manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The activities of these companies are the subject of study. To measure the extent of the carbon emission disclosure, a checklist is developed based on the measurement sheet provided by the Carbon Disclosure Project (CDP). The CDP is an organisation based in the United Kingdom which supports companies and cities to disclose the environmental impact of major corporations. The main idea of the project is that environmental reporting and risk management should become a business norm in order to ensure sustainable development of the economy. The study results show that company size has an effect on the level of carbon emission disclosure. The bigger is the company – the greater is the pressure that results from its economic activities. Therefore, the government and the public pay more attention to such business entities. It prompts the company to disclose its carbon emissions. At the same time, such factors as profitability, company growth, environmental committee and gender diversity do not affect on carbon emission disclosure. It was found that the level of carbon emission disclosure among Indonesia’s manufacturing companies is very low, and therefore the government and society need to take measures to increase the responsibility of business entities for environmental pollution.
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Gonenc, Halit, and Antonina V. Krasnikova. "Board Gender Diversity and Voluntary Carbon Emission Disclosure." Sustainability 14, no. 21 (November 3, 2022): 14418. http://dx.doi.org/10.3390/su142114418.
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In this study, we investigate the effect of board gender diversity on the decision to disclose carbon emissions voluntarily. Using an international sample consisting of 22,841 firm-year observations from 38 countries for the period 2010–2019, we determine the existence of a positive relationship between the percentage of female directors on the board and carbon disclosure. This evidence supports agency and resource dependency theories, as a gender diverse board indicates strong governance and better communication among stakeholders. Additionally, we examine the moderating effect of gender quotas across sample countries, where either soft or hard quotas have been implemented. We show that the number of firms disclosing their carbon emissions is, on average, higher in countries with either hard or soft quotas than in countries with no quota. Moreover, the positive effect of board gender diversity on voluntary carbon emission disclosure is similar across firms in countries with quotas and without quotas. The reported results demonstrate that there seems to be no need for country-level strict regulations regarding the firm-level percentage of female representation on the board to be effective, as gender board diversity in countries with no quotas has a similar effect in explaining voluntary carbon disclosure as in countries with quotas and those changing to quota regulation.
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Oktris, Lin. "Dampak Modal Intelektual Hijau terhadap Pengungkapan Sukarela Emisi Karbon." INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE 2, no. 1 (December 11, 2019): 29–40. http://dx.doi.org/10.36766/ijag.v2i1.12.
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The purpose of this research is to analyze the effect of green intellectual capital on voluntary carbon emissions disclosure in IDX listed non financial companies in 2010-2014 with 40 companies samples. This research focuses on internal aspects side. This research methodology is multiple regression analysis. The results show that green intellectual capital have positive effect on voluntary carbon emissions disclosures. The results have contribution in disclosure of carbon emissions research for educators and stakeholders. The novelty of this research is to analyze new variables such as green intellectual capital. There are only 40 sample companiesbecause the disclosure of carbon emissions in Indonesia is still voluntary. Because samples only from Indonesia companies so the results cannot be generalized in ASEAN countries, Forfuture research, researcher can use primary data to measure green intellectual capital so that it reflects the perception of the company
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Hilmi, Hilmi, Lilis Puspitawati, and Ranti Utari. "Pengaruh Kompetisi, Pertumbuhan Laba dan Kinerja Lingkungan terhadap Pengungkapan Informasi Emisi Karbon pada Perusahaan." Owner (Riset dan Jurnal Akuntansi) 4, no. 2 (July 2, 2020): 296. http://dx.doi.org/10.33395/owner.v4i2.232.
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Disclosure of carbon emissions (Carbon Emission Disclosure) is a voluntary disclosure of carbon emissions resulting from the company's production process. This research itself aims to obtain empirical evidence about competition, profit growth and environmental performance on the disclosure of carbon emissions of manufacturing companies listed on the Indonesia Stock Exchange in the 2015-2018 period. The method applied to measure the extent of disclosure of carbon emissions adopted from the check list developed based on the request sheet obtained from the Carbon Disclosure Project (CDP). The results of this study indicate that competition, profit growth and environmental performance have no effect on Carbon Emission Disclosure.
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Kim, Eunsoo, Suyon Kim, and Jaehong Lee. "Do Foreign Investors Affect Carbon Emission Disclosure? Evidence from South Korea." International Journal of Environmental Research and Public Health 18, no. 19 (September 26, 2021): 10097. http://dx.doi.org/10.3390/ijerph181910097.
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The purpose of this study is to examine the relationship between foreign investors and voluntary disclosure. Focusing on voluntary disclosure of carbon emissions information and using South Korean firms from 2014 to 2019, we found that foreign investors are likely to voluntarily release information on carbon emissions. Thus, foreign investors play a role in controlling the information gap in a capital market. We also discuss the effect of environmental, social, and governance activities on the relationship between foreign investors and voluntary disclosure. We infer that the analysis result shows that foreign investors motivate firms to improve the environment to prepare for future environmental risks. Our study also suggests solving environmental problems actively, such as responding to climate change, by presenting a direction for policymaking on sustainable management.
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Akbaş, Halil, and Seda Canikli. "Determinants of Voluntary Greenhouse Gas Emission Disclosure: An Empirical Investigation on Turkish Firms." Sustainability 11, no. 1 (December 25, 2018): 107. http://dx.doi.org/10.3390/su11010107.
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Firms worldwide have been facing an increasing pressure to disclose their Greenhouse Gas (GHG) emissions since GHG emissions are seen as the main source of global warming which is one of the most challenging problems that the world is faced with. For this reason, voluntary GHG disclosure represents a growing area of research interest. However, the existing research generally focuses on developed countries. In this sense, the present paper aims to contribute to the existing GHG disclosure literature by analyzing the determinants of voluntary disclosure of firms operating in a developing country, Turkey. The effects of both financial characteristics and board structures of firms on voluntary disclosure decisions are analyzed as the possible determinants of GHG disclosures of Turkish firms. We use two proxies for assessing the firms’ GHG disclosures. The first proxy, “sensitiveness tendency”, indicates the response behavior of firms to the Carbon Disclosure Project (CDP) survey. The second proxy, namely, “transparence tendency”, represents the disclosure behavior of firms. Using logistic regression models with a sample of 84 listed Turkish companies which were included in the Carbon Disclosure Project survey in 2014, 2015 and 2016, we find that firm size, institutional ownership and market value are positively related to the sensitivity of sampled firms, while board size is negatively related. On the other hand, our results indicate that firm size, profitability and institutional ownership have positive impacts on the transparency of Turkish listed firms.
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Oktris, Lin. "Dampak Modal Intelektual Hijau terhadap Pengungkapan Sukarela Emisi Karbon." Indonesian Journal of Accounting and Governance 2, no. 1 (June 1, 2018): 29–42. http://dx.doi.org/10.36766/ijag.v2i1.7.
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The purpose of this research is to analyze the effect of green intellectual capital on voluntary carbonemissions disclosure in IDX listed non financial companies in 2010-2014 with 40 companies samples.This research focuses on internal aspects side. This research methodology is multiple regressionanalysis. The results show that green intellectual capital have positive effect on voluntary carbonemissions disclosures. The results have contribution in disclosure of carbon emissions research foreducators and stakeholders. The novelty of this research is to analyze new variables such as greenintellectual capital. There are only 40 sample companiesbecause the disclosure of carbon emissions inIndonesia is still voluntary. Because samples only from Indonesia companies so the results cannot begeneralized in ASEAN countries, Forfuture research, researcher can use primary data to measuregreen intellectual capital so that it reflects the perception of the company.
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Kılıç, Merve, and Cemil Kuzey. "The effect of corporate governance on carbon emission disclosures." International Journal of Climate Change Strategies and Management 11, no. 1 (January 14, 2019): 35–53. http://dx.doi.org/10.1108/ijccsm-07-2017-0144.
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Purpose The purpose of this study is to investigate whether corporate governance characteristics impact the voluntary disclosure of carbon emissions. Design/methodology/approach This empirical research was carried out in two stages. Initially, the carbon disclosures data were sourced from the annual and stand-alone sustainability reports of Turkish non-financial companies listed on Borsa Istanbul during 2011-2015. Later, the corporate governance characteristics that influence carbon disclosures were examined using panel data regression models. Findings The empirical findings of this study suggested that entities with a higher number of independent directors on their boards were more likely to respond to the Carbon Disclosure Project. In addition, board nationality diversity and the existence of a sustainability committee had a significant positive impact on the propensity to disclose carbon emissions and the extent of those disclosures. Originality/value This research provides empirical evidence of the determinants of carbon emission disclosures, which could be useful for organizations and regulatory bodies. Such an understanding is crucial to specify necessary policies that will provide emission reduction practices and policies for entities. This paper fills some of the gap in the literature by concentrating on the association between corporate governance characteristics and disclosures of a more specific environmental issue, being carbon emissions.
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Matsumura, Ella Mae, Rachna Prakash, and Sandra C. Vera-Muñoz. "Firm-Value Effects of Carbon Emissions and Carbon Disclosures." Accounting Review 89, no. 2 (October 1, 2013): 695–724. http://dx.doi.org/10.2308/accr-50629.
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ABSTRACT Using hand-collected carbon emissions data for 2006 to 2008 that were voluntarily disclosed to the Carbon Disclosure Project by S&P 500 firms, we examine the effects on firm value of carbon emissions and of the act of voluntarily disclosing carbon emissions. Correcting for self-selection bias from managers' decisions to disclose carbon emissions, we find that, on average, for every additional thousand metric tons of carbon emissions, firm value decreases by $212,000, where the median emissions for the disclosing firms in our sample are 1.07 million metric tons. We also examine the firm-value effects of managers' decisions to disclose carbon emissions. We find that the median value of firms that disclose their carbon emissions is about $2.3 billion higher than that of comparable non-disclosing firms. Our results indicate that the markets penalize all firms for their carbon emissions, but a further penalty is imposed on firms that do not disclose emissions information. The results are consistent with the argument that capital markets impound both carbon emissions and the act of voluntary disclosure of this information in firm valuations. JEL Classifications: G14, Q51, M14. Data Availability: Data are available from the sources identified in the study.
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Yusuf, Muhammad. "DETERMINAN CARBON EMISSION DISCLOSURE DI INDONESIA." JURNAL AKUNTANSI DAN AUDITING 17, no. 1 (May 5, 2021): 131–57. http://dx.doi.org/10.14710/jaa.17.1.131-157.
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Global and uncontrolled climate change has caused a variety of problems and has become one of the biggest environmental issues in recent years. Indonesia is the fifth largest carbon emitting country in the world and as a country that has signed the Kyoto Protocol must participate in efforts to reduce carbon emissions. According to the Ministry of Environment and Forestry, industry is one of the biggest contributors to carbon emissions. This is one of the reasons why companies (industries) must contribute to reducing carbon emissions. Efforts made by companies are to do carbon emission disclosure. Carbon emission disclosure in Indonesia is still a voluntary disclosure so that not all companies make disclosures in their financial statements. This study aims to obtain empirical evidence about the factors that drive companies to conduct carbon emission disclosure. The determinant variables of carbon emission disclosure in this study are profitability, leverage, environmental performance, company size, and corporate governance, by taking samples of companies listed on the Corporate Governance Perception Index (CGPI) for the period 2007-2017. Determination of the research sample using purposive sampling method and data analysis techniques using the multiple linear regression method. The results showed that profitability, environmental performance, company size, and corporate governance had a positive effect on carbon emission disclosure while leverage had no effect on carbon emission disclosure. This research contribution provides empirical evidence about profitability, environmental performance, company size, and corporate governance are factors that drives companies to do carbon emission disclosure in Indonesia.
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Lee, Jeong-Hwan, and Jin-Hyung Cho. "Firm-Value Effects of Carbon Emissions and Carbon Disclosures—Evidence from Korea." International Journal of Environmental Research and Public Health 18, no. 22 (November 19, 2021): 12166. http://dx.doi.org/10.3390/ijerph182212166.
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We examine the association between carbon emissions, carbon disclosures, and firm value for Korean firms, with a particular interest in chaebols, a special type of Korean conglomerate. Using hand-collected carbon emissions and firm-specific data for 841 Korean firms, including 514 chaebols and 335 non-chaebols, we find a significantly positive relationship between carbon emissions and firm value among chaebol affiliates. This result contrasts with previous findings conducted in advanced markets, where investors consider carbon emissions to be destructive. In terms of the voluntary disclosure policy, we find that companies with good environmental performance tend to disclose carbon emissions voluntarily. We further argue that these findings originate from the specific business atmosphere in Korea. Our results support the traditional view of corporations in terms of environmental policy and highlight the importance of firm characteristics and historical developments in the analysis of environmental policy.
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Apriliana, Erika. "Pengaruh Tipe Industri, Kinerja Lingkungan, Dan Profitabilitas Terhadap Carbon Emission Disclosure." WIDYAKALA JOURNAL 6, no. 1 (May 15, 2019): 84. http://dx.doi.org/10.36262/widyakala.v6i1.149.
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The purpose of this study was to examine the effect of Industrial Type, Environmental Performance, and Profitability on Carbon Emission Disclosure. The independent variable in this study is Industry Type which is measured using dummy variables, Environmental Performance is measured using PROPER and Profitability is measured using return on assets. Carbon Emission Disclosure as the dependent variable was measured using a checklist adopted from the research of Choi et al. The population of this study is non-financial companies registered in 2015-2017. By using purposive sampling method and obtained a total sample of 33 companies per year. The method of analysis of this study includes descriptive statistical analysis, classic assumption test, hypothesis testing and multiple linear regression. The results of this study indicate that Industry Type and Profitability have a significant effect on the level of carbon emissions disclosure. Meanwhile, Environmental Performance does not have a significant effect on the level of carbon emissions disclosure. Carbon Emission Disclosure variables can be explained by Industry Type, Environmental Performance and Profitability variables of 17.9%, while the remaining 82.1% are influenced by other variables not examined in this study.Keywords : Carbon Emission Disclosure, Voluntary Disclosures, Industrial Type, Environmental Performance, Profitability
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Sra, Jaspreet K., Annie L. Booth, and Raymond A. K. Cox. "Voluntary carbon information disclosures, corporate-level environmental sustainability efforts, and market value." Green Finance 4, no. 2 (2022): 179–206. http://dx.doi.org/10.3934/gf.2022009.
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<abstract> <p>Based on global 500 companies, this study examines whether the market incorporates the corporations' voluntary carbon emissions disclosures as part of their environmental sustainability efforts, thus increasing their market value. Proxies used to measure the corporations' ecological sustainability efforts include the choice of voluntary carbon disclosures, carbon emissions amounts, carbon intensity, and carbon disclosure quality. During the study period, those companies that chose to disclose their carbon information to the Carbon Disclosure Project (CDP), saw the market value their efforts towards environmental sustainability by increasing their market value. This study also compared the market value of disclosing and non-disclosing firms and found that non-disclosing companies had higher market value than did disclosing firms. However, this relationship was statistically insignificant. This study uses the more extensive data set, extended period, and more robust econometric approach (Difference GMM) and extends the boundaries of accounting research to incorporate environmental-related disclosures. Therefore, this most recent study can provide new insights to researchers, investors, and policymakers in the present context of environmental sustainability and business sustainability.</p> </abstract>
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Lee, Jaehong. "Voluntary Disclosure of Carbon Emissions Information, Managerial Ability, and Credit Ratings." Sustainability 14, no. 12 (June 20, 2022): 7504. http://dx.doi.org/10.3390/su14127504.
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This paper examines the relationship between the voluntary disclosure of carbon emissions information and credit ratings, and whether managerial ability affects this association. I examine a sample of 7996 non-financial companies with fiscal year-end in December listed in the Korea Stock Exchange Market (KSE) for the period of 2011–2019. Using CDP reports to measure the voluntary disclosure of carbon emissions information, this study reports that, on average, credit ratings can be increased through the proactive disclosure activities of environmental problems in South Korea. Moreover, in companies managed by competent managers, the positive association between the voluntary disclosure of carbon emissions information and credit ratings is pronounced, implying that competent managers encourage the disclosure of qualitative information to assess the intrinsic corporate value. These results are robust even after analyses with different empirical models.
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Liesen, Andrea, Andreas G. Hoepner, Dennis M. Patten, and Frank Figge. "Does stakeholder pressure influence corporate GHG emissions reporting? Empirical evidence from Europe." Accounting, Auditing & Accountability Journal 28, no. 7 (September 21, 2015): 1047–74. http://dx.doi.org/10.1108/aaaj-12-2013-1547.
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Purpose – The purpose of this paper is to seek to shed light on the practice of incomplete corporate disclosure of quantitative Greenhouse gas (GHG) emissions and investigates whether external stakeholder pressure influences the existence, and separately, the completeness of voluntary GHG emissions disclosures by 431 European companies. Design/methodology/approach – A classification of reporting completeness is developed with respect to the scope, type and reporting boundary of GHG emissions based on the guidelines of the GHG Protocol, Global Reporting Initiative and the Carbon Disclosure Project. Logistic regression analysis is applied to examine whether proxies for exposure to climate change concerns from different stakeholder groups influence the existence and/or completeness of quantitative GHG emissions disclosure. Findings – From 2005 to 2009, on average only 15 percent of companies that disclose GHG emissions report them in a manner that the authors consider complete. Results of regression analyses suggest that external stakeholder pressure is a determinant of the existence but not the completeness of emissions disclosure. Findings are consistent with stakeholder theory arguments that companies respond to external stakeholder pressure to report GHG emissions, but also with legitimacy theory claims that firms can use carbon disclosure, in this case the incomplete reporting of emissions, as a symbolic act to address legitimacy exposures. Practical implications – Bringing corporate GHG emissions disclosure in line with recommended guidelines will require either more direct stakeholder pressure or, perhaps, a mandated disclosure regime. In the meantime, users of the data will need to carefully consider the relevance of the reported data and develop the necessary competencies to detect and control for its incompleteness. A more troubling concern is that stakeholders may instead grow to accept less than complete disclosure. Originality/value – The paper represents the first large-scale empirical study into the completeness of companies’ disclosure of quantitative GHG emissions and is the first to analyze these disclosures in the context of stakeholder pressure and its relation to legitimation.
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Lee, Jaehong. "CEO Overconfidence and Voluntary Disclosure of Greenhouse Gas Emissions: With a Focus on the Role of Corporate Governance." Sustainability 13, no. 11 (May 27, 2021): 6054. http://dx.doi.org/10.3390/su13116054.
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The purpose of this study is to investigate the relationship between overconfident CEOs, voluntary disclosure of greenhouse gas emissions and firm value, and whether corporate (internal and external) governance affects this association. Using logistic regression and a firm-fixed effect model, I analyzed a sample of voluntary disclosing firms with the fiscal year in December that are listed in the Korean stock market for the period from 2011 to 2019, measuring corporate governance based on female representation within boards and industry-level competition. As a result, this study finds that, on average, CEO overconfidence is positively related to voluntary disclosure of greenhouse gas emissions. Moreover, in firms with more female representation on boards, the positive relationship between CEO overconfidence, voluntary disclosure of greenhouse gas emissions, and firm value is more pronounced, implying that women directors effectively monitor overconfident CEOs. Similarly, this positive relationship is also strengthened according to the degree of industry-level competition, which indicates that the external governance role of competition can alleviate CEO overconfidence. This study is meaningful as the first study to examine the effect of voluntary greenhouse gas (GHG) emissions disclosure on investors’ valuation in the Korean capital market, taking the characteristics of managers and governance structure into account.
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Lee, Hyunah, and Jaehong Lee. "Industry Competition, Corporate Governance, and Voluntary Disclosure of Greenhouse Gas Emissions Information: Evidence from South Korea." International Journal of Environmental Research and Public Health 19, no. 23 (December 5, 2022): 16272. http://dx.doi.org/10.3390/ijerph192316272.
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This study investigates the relationship between industry competition and managers’ voluntary disclosure policies and examined how the corporate governance structure affects this relationship in South Korean companies. The fiercer the competition within the industry to which the company belongs, the higher the incentive for managers to perform strategic actions to improve their competition status. This increase in the strategic incentives of managers can be seen through voluntary disclosure policies. The empirical results of this study are as follows. First, it was found that there was a negative relationship between the degree of industry competition and the level of voluntary disclosure of greenhouse gas emissions information. This means that managers perform less disclosure to maximize the value of the company because the more competition within the industry intensifies, the higher the proprietary cost of disclosing information on greenhouse gas emissions information. Second, it was found that the corporate governance structure weakened the relationship between the degree of industry competition and the level of corporate voluntary disclosure. These results can be interpreted as that a good governance structure supports such managers’ disclosure decisions because managers are more likely to choose disclosure policies to maximize the value of the company than personal benefits even in the fierce industry competition.
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Datt, Ragini Rina, Le Luo, and Qingliang Tang. "Corporate voluntary carbon disclosure strategy and carbon performance in the USA." Accounting Research Journal 32, no. 3 (September 27, 2019): 417–35. http://dx.doi.org/10.1108/arj-02-2017-0031.
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Purpose This study aims to examine whether good carbon performers disclose more carbon information overall than poor performers, and if yes, how firms select different types of carbon information to signal their genuine superior carbon performance. Design/methodology/approach The level of disclosure is measured based on content analysis of Carbon Disclosure Project (CDP) reports. The study sample consists of 487 US companies that voluntarily participated in the CDP survey from 2011 to 2012. The authors use the t-test and multiple regression models for analyses. Findings The results consistently indicate that firms with better carbon performance disclose a greater amount of overall carbon information, supporting the signalling theory. In addition, in contrast to previous studies that merely consider the overall disclosure level, the authors also investigate disclosure of each major aspect of carbon activities. The results show that good carbon performers disclose more key carbon items, such as goods and services that avoid greenhouse gas (GHG) emissions, external verification and carbon accounting, to signal their true type. Research limitations/implications This study has some limitations. The authors rely on CDP reports for analysis and focus on the largest companies in the USA. Caution should be exercised when generalising the results to other countries, smaller firms or voluntary carbon information disclosed in other communications channels. Practical implications Because carbon disclosure has already been moving from a voluntary to mandatory requirement in many jurisdictions, the format and content of CDP reports might be considered for a formal standalone GHG statement. Based on the results, the authors believe that there should be industry-specific disclosure guidelines, and more disclosure should be made at the project level. Originality/value In the context of climate change, this study provides support for the signalling theory by utilising the relationship between voluntary carbon disclosure and performance. The study also provides empirical evidence on how companies may use different types of carbon information to signal their underlying carbon performance.
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Ika, S. R., Yuliani, A. Okfitasari, and A. K. Widagdo. "Factors influencing carbon emissions disclosures in high profile companies: some Indonesian evidence." IOP Conference Series: Earth and Environmental Science 1016, no. 1 (April 1, 2022): 012043. http://dx.doi.org/10.1088/1755-1315/1016/1/012043.
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Abstract The purpose of this article was to examine the influence of ownership structure, environmental performance, financial performance, and company size on carbon emissions reporting of high profile companies in Indonesia. Ownership structure was measured by foreign ownership, institutional ownership, and concentrated ownership, while environmental performance was measured by the Company Performance Rating Program in Environmental Management released by the Ministry of Environment (PROPER) and ISO 14001 certification. The disclosure of carbon emissions was assessed by an index drawn from the carbon disclosures project (CDP). High profiles companies were chosen as the sample since the companies create carbon emissions in their operation which contributes to global climate change. Utilizing 102 companies in 2019 as a sample, results of multivariate regression suggest that institutional ownership and size positively influence the level of carbon emission disclosure. These results indicate that larger companies and companies owned by an institution have a higher tendency to report carbon emissions either in the firm’s annual report or in the sustainability reporting. The findings motivated the listed companies in reporting their carbon emission which is voluntary in nature. Such findings may give an understanding to the capital market regulatory body in releasing regulations that encourage listed companies to report their carbon emission.
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Depoers, Florence, Thomas Jeanjean, and Tiphaine Jérôme. "Voluntary Disclosure of Greenhouse Gas Emissions: Contrasting the Carbon Disclosure Project and Corporate Reports." Journal of Business Ethics 134, no. 3 (November 8, 2014): 445–61. http://dx.doi.org/10.1007/s10551-014-2432-0.
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Widagdo, A. K., B. A. Rahanyamtel, and S. R. Ika. "The impact of audit committee characteristics, financial performance, and listing age on greenhouse gas emission disclosures of highly emitted industry in Indonesia." IOP Conference Series: Earth and Environmental Science 1016, no. 1 (April 1, 2022): 012047. http://dx.doi.org/10.1088/1755-1315/1016/1/012047.
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Abstract Greenhouse gas or carbon emissions produced by manufacturing operations and other highly emitted industries are causes of global warming. Therefore, either in the sustainability reporting or in the corporate social and environmental reporting section, as stated in the annual report, the company usually discloses its activities related to carbon emission handling for sustainable business. In Indonesia, however, the extent of carbon emission disclosures is voluntary. The objective of this study was to investigate the effect of audit committee characteristics, financial performance, and listing age on carbon emissions reporting of highly emitted companies in Indonesia. Audit committee characteristics were measured by the number of audit committee members and the number of audit committee meetings, while Altman financial distress model measured financial performance. A checklist based on the Carbon Disclosure Project (CDP) evaluated the greenhouse gas emissions disclosures. This study uses 99 companies of highly emitted industry listed on the Indonesia Stock Exchange. Results of multiple regression analysis indicate that the number of audit committee meetings positively affects the greenhouse gas emissions report. The result suggests that the more active the audit committee in the company in conducting meetings, the higher the company’s incentives to disclose carbon emission in the company’s annual report or the sustainability reporting. The study provides insight into the regulation released by the capital market authority agency regarding strengthening factors that may influence listed companies to report their carbon emission.
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Kim, Eunsoo. "The Effect of Female Personnel on the Voluntary Disclosure of Carbon Emissions Information." International Journal of Environmental Research and Public Health 19, no. 20 (October 14, 2022): 13247. http://dx.doi.org/10.3390/ijerph192013247.
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This paper examines the effect of female personnel (female executives and female employees) on corporate voluntary disclosure policy on carbon emission information. The study is motivated from the recent fact that the laws and systems related to female workers are rapidly changing as the social and economic status of women in South Korea has recently improved. In a sample of 9406 firm-year observations over the period from 2014 to 2020, the higher the proportion of female executives, the higher the frequency of voluntary disclosure on carbon emission information. These results are the same even when the female workforce was measured as the proportion of general female employees. Therefore, it can be said that the existence of female personnel at the management and practice level plays a significant role in improving voluntary disclosure quality. By considering the impact of gender manpower composition on enhancing corporate transparency, it provides evidence that market participants can have a positive view on the quality of information environment provided by companies with a high proportion of female personnel.
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Guo, Chensi, and Wenyan Pan. "Research on Voluntary Carbon Information Disclosure Mechanism of Enterprises from the Perspective of Stakeholders—A Case Study on the Automobile Manufacturing Industry." International Journal of Environmental Research and Public Health 19, no. 24 (December 19, 2022): 17053. http://dx.doi.org/10.3390/ijerph192417053.
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As the primary source of carbon emissions, enterprises must work hard to save energy, reduce emissions, and disclose timely carbon information to the public. As a key means of communicating carbon management performance to stakeholders, carbon information disclosure is directly tied to the future sustainability of enterprises. Based on panel data of 118 listed firms in the automotive manufacturing industry from 2017 to 2021, this study rates the sample companies’ quality of carbon information disclosure. The impact of the government, creditors, media, employees, and suppliers on such disclosure is also examined from the stakeholders’ standpoint. The findings reveal that: (1) Although there has been a gradual increase in the degree of disclosure, overall levels are still low, and the willingness to voluntarily disclose is insufficient. (2) When other variables are neglected, the government, creditors, media, and employees all assist enterprises in disclosing carbon information, but the influence of suppliers will inhibit such disclosure. In the context of a complex economic system, the level of carbon disclosure is positively correlated with the government, the media, and employees, while negatively correlated with creditors. The influence of suppliers is not significant. These findings may aid in formulating related policies from different dimensions, directing enterprises to publish carbon information actively and strengthening carbon management.
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Pencle, Nadra. "Voluntary Disclosure of GHG Emissions: Contrasting the CDP with Corporate Reports." Social and Environmental Accountability Journal 37, no. 3 (September 2, 2017): 226–27. http://dx.doi.org/10.1080/0969160x.2017.1376910.
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Borghei, Zahra, Philomena Leung, and James Guthrie. "Does voluntary greenhouse gas emissions disclosure reduce information asymmetry? Australian evidence." Afro-Asian J. of Finance and Accounting 8, no. 2 (2018): 123. http://dx.doi.org/10.1504/aajfa.2018.091055.
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Guthrie, James, Zahra Borghei, and Philomena Leung. "Does voluntary greenhouse gas emissions disclosure reduce information asymmetry? Australian evidence." Afro-Asian J. of Finance and Accounting 8, no. 2 (2018): 123. http://dx.doi.org/10.1504/aajfa.2018.10011978.
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Gagné, Vincent, and Sylvie Berthelot. "The evolution of corporate reporting on GHG emissions: A Canadian portrait." Corporate Governance and Sustainability Review 5, no. 2 (2021): 22–34. http://dx.doi.org/10.22495/cgsrv5i2p2.
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This paper examines the evolution of the extent to which firms with a high greenhouse gases (GHG) emission impact complied with Chartered Professional Accountants (CPA) Canada guidelines on climate change disclosures, as well as the factors that influenced these disclosures. The sample is comprised of Canadian firms in the mining, energy, and chemical sectors. The study measures the influence of the firms’ political exposure and media visibility, their audit firm, the presence of an environment committee, their ownership structure, and their financial performance on their GHG emissions disclosures. Our findings show that these disclosures considerably evolved over the 10 year period from 2007 to 2017 and that this evolution was in the form of a leap rather than a slow and steady learning curve. We also confirmed the significant influence of the environment committee, political exposure, and media visibility on this evolution. Our empirical results corroborate the work of DiMaggio and Powell (1983), outlining the important role normative pressures play in voluntary GHG emissions disclosure firms make in order to secure the legitimacy conferred by society (Suchman, 1995)
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Chen, Fuzhong, Muzzammil Hussain, Jawad Ahmad Khan, Ghulam Mustafa Mir, and Zeeshan Khan. "Voluntary disclosure of greenhouse gas emissions by cities under carbon disclosure project: A sustainable development approach." Sustainable Development 29, no. 4 (February 5, 2021): 719–27. http://dx.doi.org/10.1002/sd.2169.
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Godet, Amandine, George Panagakos, and Michael Bruhn Barfod. "Voluntary Reporting in Decarbonizing Container Shipping: The Clean Cargo Case." Sustainability 13, no. 15 (July 30, 2021): 8521. http://dx.doi.org/10.3390/su13158521.
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Led by the UN’s International Maritime Organization (IMO) and the EU, the shipping industry struggles to reduce its greenhouse gas (GHG) emissions to align with the Paris Agreement. Clean Cargo, the leading voluntary buyer–supplier forum for sustainability in the cargo shipping industry, developed some years ago a methodology to calculate and report the GHG emissions from containerships. The recently introduced carbon emission requirements by the IMO and EU have reinforced the members’ interest in a new Clean Cargo reporting mechanism that enables a more effective and efficient monitoring of the decarbonization progress. A better understanding of the user needs accompanied by due consideration to the regulatory environment and the technological advances are key to build this new framework. This paper builds on the case of the Clean Cargo initiative to (1) identify the stakeholders’ expectations and motivations for voluntary disclosure of environmental information, and (2) discuss the governance challenges of voluntary initiatives. A questionnaire was designed and deployed to investigate the current uses of Clean Cargo data and the information sharing among different stakeholders. Voluntary schemes can speed up the decarbonization process by proposing standards accepted by all actors of the global value chain. Clean Cargo members envision reporting on absolute GHG emissions per shipment as the way forward.
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Ganu, Josephine, and Hannah Fosuaa Amo. "A systematic review of corporate carbon accounting and disclosure practices: Charting the path to carbon neutrality." Journal of Research in Emerging Markets 2, no. 4 (October 7, 2020): 68–81. http://dx.doi.org/10.30585/jrems.v2i4.547.
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The study examined the theoretical motivation for carbon disclosure and its adequacy for deliberate responsible action. Generally, there is an increase in corporate carbon disclosures in the business sector. Organizations are mostly disclosing their carbon emissions through annual reports, integrated reports, or stand-alone sustainability reports for different reasons and motives. However, the study infers that the quality and adequacy of the current disclosures are debatable due to a lack of consistency and technical details. The causal reason may be due to the inherently voluntary nature of the corporate carbon disclosure. The study finds that there is less research on carbon accounting and disclosures in developing countries especially, in Africa. There is a need for organizations to streamline the application and approaches to carbon accounting. The study suggests the necessity for government regulators and standard setters in accounting to provide a framework that will guide carbon disclosure practices.
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Coelho Silva Castro, Mariana Camilla, Fernanda Maria Rodrigues Castro, Edgard Henrique Oliveira Dias, Marina Andrada Maria, Pedro Fialho Cordeiro, and Samuel Rodrigues Castro. "GHG emissions inventory: a statistical analysis of the voluntary disclosure in Brazil." International Journal of Environmental Technology and Management 23, no. 1 (2020): 68. http://dx.doi.org/10.1504/ijetm.2020.10032488.
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Castro, Mariana Camilla Coelho Silva, Samuel Rodrigues Castro, Pedro Fialho Cordeiro, Marina Andrada Maria, Fernanda Maria Rodrigues Castro, and Edgard Henrique Oliveira Dias. "GHG emissions inventory: a statistical analysis of the voluntary disclosure in Brazil." International Journal of Environmental Technology and Management 23, no. 1 (2020): 68. http://dx.doi.org/10.1504/ijetm.2020.110160.
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Luo, Le, and Hongjun Wu. "Voluntary Carbon Transparency: A Substitute for or Complement to Financial Transparency?" Journal of International Accounting Research 18, no. 2 (April 1, 2019): 65–88. http://dx.doi.org/10.2308/jiar-52421.
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ABSTRACT We analyze the relationship between financial transparency and carbon transparency based on the ethical and opportunistic perspectives. Our sample comprises 10,341 firm-year observations from firms in 55 countries or regions in the CDP (previously the Carbon Disclosure Project) during the period 2003–2015. We measure carbon transparency based on both managerial propensity to publicly disclose carbon information and the level and comprehensiveness of the voluntary carbon disclosure. We operationalize financial transparency based on firms' earnings management (EM). We find that our carbon transparency proxies are negatively associated with EM. These results are consistent with the ethical perspective, which suggests that carbon transparency complements financial transparency rather than substitutes for it. Furthermore, we find that the complementary relationship between carbon transparency and financial transparency is dependent on a country's stakeholder orientation, collectivism in the national culture, the presence of an emissions trading scheme, and regulatory governance.
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Mia, Parvez, Tarek Rana, and Lutfa Tilat Ferdous. "Government Reform, Regulatory Change and Carbon Disclosure: Evidence from Australia." Sustainability 13, no. 23 (November 30, 2021): 13282. http://dx.doi.org/10.3390/su132313282.
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This paper examines the effect of two Australian environmental regulatory changes, specifically the Clean Energy Act (CEA) 2011 and the National Greenhouse and Energy Reporting (NGER) Act 2007 with reference to voluntary corporate carbon disclosure practices. In doing so, it describes the brief history of this carbon-related regulatory change, its scope, enforcement criteria and corporations’ disclosures. This is a longitudinal analysis of 219 annual reports of 73 listed corporations in Australia which were subjected to carbon tax and report carbon emissions as per the CEA 2011 and NGER Act 2007 accordingly. Any corporation or facility that emitted scope 1 emissions of 25,000 tonnes of carbon dioxide equivalent (CO2-e) or more were liable for a carbon tax in accordance with CEA 2011. Drawing on stakeholder theory and legitimacy theory, this study uses content analysis to examine corporate carbon disclosure. The findings suggest there is a considerable increase in the number of carbon-related disclosures following these regulations being enacted as law. In addition, carbon-specific communication has become much more prevalent and accounts for a larger proportion of the sampled organisations’ reported environmental information. The results of this study enrich the validity of the hypothesis that organisations would seek to legitimise their operations to stakeholders by increasing their environment-related declarations. The evidence presented in the analysis confirms the assertion that government environmental legislation/regulation has a positive impact on corporate behaviour and accountability. These findings have significant consequences for the government, decision-makers and the accounting profession, indicating that regulatory guidance enhances both mandatory and voluntary disclosure. It also offers key insights into the possible impacts of the carbon regulatory change for future research to consider.
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Ararat, Melsa, and Borhan Sayedy. "Gender and Climate Change Disclosure: An Interdimensional Policy Approach." Sustainability 11, no. 24 (December 16, 2019): 7217. http://dx.doi.org/10.3390/su11247217.
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This paper investigates the impact of corporate boards’ gender diversity on voluntary public disclosure of climate change risks in an emerging economy context in which environmental regulations are weak and markets are ineffective. The investigation relies on data from the CDP (formerly known as the Carbon Disclosure Project) as a corporate sustainability reporting initiative supported by institutional investors, based on a sample of Turkish firms that were invited to disclose their climate change risks and greenhouse gas emissions over the period of 2010–2019 through the CDP platform. We report that the presence of women on board committees, as a proxy for their active involvement in corporate governance, increases the likelihood of voluntary climate change disclosure. We, on the other hand, found no evidence of a positive impact on climate change reporting with women’s overall representation in boards. These findings lend support to board reforms that aim to increase effective representation of women on boards for the better management of sustainability risks and responsiveness to stakeholder demands in countries where legislators are reluctant to introduce climate change reforms.
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Kalkanci, Basak, and Erica L. Plambeck. "Managing Supplier Social and Environmental Impacts with Voluntary Versus Mandatory Disclosure to Investors." Management Science 66, no. 8 (August 2020): 3311–28. http://dx.doi.org/10.1287/mnsc.2019.3382.
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A buying firm might in the future incur costs associated with a supplier’s carbon dioxide emissions, safety violations, or other social or environmental impacts. Learning about a supplier’s impacts requires costly effort, but it is necessary (and sometimes sufficient) to reduce those impacts. The capital market valuation of a buying firm reflects investors’ estimate of future costs associated with a supplier’s impacts, as well as any costs that the buying firm incurs in order to learn about and reduce a supplier’s impacts. This paper analyzes a game theoretic model in which a manager—with the objective of maximizing the capital market valuation of the buying firm—decides whether to learn about a supplier’s impacts, how much cost to incur to reduce the supplier’s impacts, and whether to disclose the supplier’s impacts to investors. The investors have rational expectations (e.g., that a manager might withhold bad news about the supplier’s impacts) and value the buying firm accordingly. The paper considers a mandate to disclose information learned about a supplier’s impacts. The paper shows that the disclosure mandate deters learning and thus, under plausible conditions, results in higher expected impacts. The disclosure mandate can result in lower expected impacts only if buying firms face moderately high future costs associated with suppliers’ impacts. In contrast, a disclosure mandate always increases a buying firm’s expected discounted profit and capital market valuation. A disclosure mandate can induce cooperation among buying firms with a shared supplier, yet result in higher expected impacts by the supplier. When a buying firm has alternative suppliers, the disclosure mandate favors commitment to a supplier to facilitate learning about that supplier’s impacts (instead of searching for a lower-impact supplier). This paper was accepted by Serguei Netessine, operations management.
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Rosa, Fabricia Silva, Alessio Bartolacelli, and Rogério J. Lunkes. "Post-regulation effects on driving factors (no) environmental disclosures about greenhouse gas emissions in Italian companies." Journal of Financial Reporting and Accounting 20, no. 3/4 (March 12, 2021): 712–33. http://dx.doi.org/10.1108/jfra-07-2020-0211.
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Purpose The purpose of this study is to analyze the simultaneous effect of the regulation (non-financial information (NFI)- 254/2016) and the factors driving in (no)environmental disclosure (ED) and the reduction of greenhouse gases (GHG) of Italian companies. Design/methodology/approach The study is supported by the theory of legitimacy. The level of ED regarding GHG was measured for 125 Italian companies in 2018, the companies were selected from Commissione Nazionale per le Società e la Borsa di Itália, because those included in the list of companies in the Dichiarazione Non Finanziaria all date back to December 31, 2019. Using a scoring system and content analysis of their annual reports, through 20 criteria supported by the literature. The study explores variables of the current legislation, the effect of disclosure and no disclosure, and the influence of the shareholding structure, managerial shareholding, economic power and industry classification at the ED level. The analyses were carried out using structural equation modeling because the authors seek to understand the cause-effect relationship between aspects of legitimacy with dissemination on GHG emissions. Findings This study finds that NFI. Research limitations/implications The study is limited to understanding the effect of legislation on the level of mandatory disclosure in non-financial reports, and the Paris Agreement (voluntary) disclosure on GHG, so the choice of companies analyzed and the study variables are limited to companies that are required to publish non-financial reports, and the variables considered in the study take into account normative aspects and voluntary guidelines of the Paris Agreement. As implications, the results show that adherence to the Paris Agreement contributes more to the quality and comprehensiveness of the information than adherence to the European and Italian legislation (mandatory), which reinforces the understanding that even if the legislation has advanced, it is still soft regarding the quality of information on companies' practices regarding the reduction of GHG emissions. Practical implications The findings suggest that non-financial reports are being adopted by listed Italian companies, however, there is variation in the scope of the reports, especially on GHG. For companies listed in Italy, non-financial reports comply with Italian Legislative Decree 254/2016 (mandatory), however, the quality of information on GHG is improved when companies' reports have greater adherence to the Paris Agreement (voluntary). Social implications The results can encourage companies listed in Italy to incorporate NFI in annual reports based on the Paris Agreement, the global pact to reduce GHG emissions, thus building confidence in the capital market and society in general. Originality/value The findings contribute to the literature on non-financial reporting, the level of compliance with legal basis and international best practices, such as the Paris Agreement, providing empirical analyzes of non-financial disclosures in publicly available reports in Italy.
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Broadstock, David C., Alan Collins, Lester C. Hunt, and Konstantinos Vergos. "Voluntary disclosure, greenhouse gas emissions and business performance: Assessing the first decade of reporting." British Accounting Review 50, no. 1 (January 2018): 48–59. http://dx.doi.org/10.1016/j.bar.2017.02.002.
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Krishnamurti, Chandrasekhar, and Eswaran Velayutham. "The influence of board committee structures on voluntary disclosure of greenhouse gas emissions: Australian evidence." Pacific-Basin Finance Journal 50 (September 2018): 65–81. http://dx.doi.org/10.1016/j.pacfin.2017.09.003.
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Luo, Laura Le, and Qingliang Tang. "Does National Culture Influence Corporate Carbon Disclosure Propensity?" Journal of International Accounting Research 15, no. 1 (April 1, 2015): 17–47. http://dx.doi.org/10.2308/jiar-51131.
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ABSTRACTThis study examines the influence of culture on management's response to the challenge of climate change, as manifested in firms' voluntary participation in carbon disclosure via the Carbon Disclosure Project (CDP). We argue that national culture impacts managerial attitudes and philosophies about environmental protection and thus affects the willingness as well as the extent to which managers recognize the need for emissions control and disclosure. Based on a sample of 1,762 firms from 33 countries, we find that cultural dimensions of masculinity, power distance, and uncertainty avoidance are strongly and consistently related to carbon disclosure propensity, regardless of whether G. Hofstede, G. J. Hofstede, and Minkov (2010) or Global Leadership and Organizational Behaviour Effectiveness (GLOBE) culture measures are used. Our results also show individualism and long-term orientation has significant impact under the Hofstede measure, although not under GLOBE measures, after controlling for other compounding factors. In addition, our evidence implies that national culture may moderate the effect of carbon control mechanisms, such as emissions trading schemes. Finally, the empirical evidence indicates that the impact of culture is not sensitive to national wealth and industry membership. The findings suggest culture exerts incremental influences beyond economic and regulatory incentives and therefore should be adequately considered in the combat against global warming and particularly in negotiations for an international climate agreement that is more acceptable to societies with disparate cultural backgrounds.
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Fontana, Stefano, Eugenio D'Amico, Daniela Coluccia, and Silvia Solimene. "Does environmental performance affect companies’ environmental disclosure?" Measuring Business Excellence 19, no. 3 (August 17, 2015): 42–57. http://dx.doi.org/10.1108/mbe-04-2015-0019.
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Purpose – This study aims to verify the presence, evolution and determinants of voluntary environmental disclosure from companies listed on the Milan Stock Exchange. The authors examined documentation of listed firms from 2006 and 2009. These years immediately precede and follow Italian legislative decree n. 32/2007, which introduced (albeit on a voluntary basis) disclosure of environment-related company information. Design/methodology/approach – The authors’ approach utilizes multivariate regression analysis. The disclosure index of the years 2006 and 2009 represents the dependent variable. Independent variables include firm size, business industry, public shareholders, legislation and environmental performance. Findings – The results show positive effects on environmental disclosure related to legislative decree n. 32, the presence of government shareholdings in firms’ ownership structure, business industry and firm size. The interrelation between firm size and environmental performance shows that large companies give more information only if they produce more environmental pollution, to legitimize themselves to stakeholders. Research limitations/implications – Despite the authors’ contributions concerning environmental information described in the Introduction, they must express two limitations of their analysis. First, the sample analyzed is quite small (only 44 firms). Second, carbon dioxide emissions was chosen as an indicator of atmospheric pollution, yet emissions information has not been provided by Italian firms (even those that are listed on the Milan Stock Exchange), despite being accepted internationally as a measure of environmental performance in business. In addition, in Italy, there is no database ranking firms on corporate social responsibility (CSR). Practical implications – There are many reasons behind the weak or even negative roles of managers regarding social and environmental disclosure. These reasons include a dearth of resources, the profit imperative, lack of legal requirements, insufficient knowledge or awareness, poor performance and fear of bad publicity. What seems to be a real obstacle is the lack of knowledge about non-financial disclosure – in particular, how to gauge, produce and release information when it comes to a firm’s interaction with environment and society, and this void causes low levels of disclosure and even the absence of such action. Some of the reasons for non-disclosure might be attributed to a lack of awareness and knowledge among corporate managers regarding CSR reporting, in general, and disclosure on eco-justice issues, in particular. Originality/value – The first contribution of this work is to realize, for the first time, a specific analysis on Italian firms’ environmental disclosures. Moreover, the study extends this analysis to all entities’ informative documents. This paper also allows an examination of effects of new legislation that encourages environmental information in a corporation’s financial annual report. Finally, this is the first paper to conduct quantitative analysis on firms in the Italian financial market concerning environmental disclosure, as well as regression analysis to identify determinants of firms’ disclosure.
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Yook, Keun-Hyo, Hakjoon Song, Dennis M. Patten, and Il-Woon Kim. "The disclosure of environmental conservation costs and its relation to eco-efficiency." Sustainability Accounting, Management and Policy Journal 8, no. 1 (March 6, 2017): 20–42. http://dx.doi.org/10.1108/sampj-07-2016-0039.
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Purpose This paper aims to examine whether the amount of costs disclosed as relating to environmental controls is associated with environmental performance in terms of carbon-based eco-efficiency, and whether any relation supports voluntary disclosure theory or legitimacy theory arguments. Further, this paper attempts to determine whether the relations differ across the initial Kyoto Protocol period. Design/methodology/approach In this study, the focus was on Japanese firms over the period from 2002 to 2012. Disclosed environmental control costs (capital expenditures and operating costs) were identified and eco-efficiency measures based on carbon emissions were calculated. Relations were tested for using regression models controlling for other potential impact factors. Findings This study’s results indicate a negative relation between disclosed levels of environmental control costs and eco-efficiency performance measures, and, for two of our three eco-efficiency metrics, this is more pronounced over the Kyoto Protocol period. Research limitations/implications These results support a legitimacy theory (as opposed to voluntary disclosure theory) explanation for the relation between the levels of disclosed environmental control costs and carbon-based eco-efficiency. Originality/value This study is the first to explore how flexibility in cost classification may be used by companies to foster a disclosure strategy.
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COHEN, MARK A., and W. KIP VISCUSI. "THE ROLE OF INFORMATION DISCLOSURE IN CLIMATE MITIGATION POLICY." Climate Change Economics 03, no. 04 (November 2012): 1250020. http://dx.doi.org/10.1142/s2010007812500200.
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Information disclosure policies represent an additional policy mechanism that can be used to foster reductions in greenhouse gas emissions. These informational efforts could be either mandatory or voluntary, but in each case government regulation could play a productive role by establishing common structures for the information and providing criteria to ensure the accuracy and credibility of the information. Unlike most previous uses of environmental information disclosure, such as the Toxic Release Inventory and pesticide warnings, carbon footprint labeling does not communicate information about immediate private benefits. While considerable insight can be gleaned by examining the principles for effective warnings generally, additional research would further our understanding of how to best design a successful information effort directed at varied future environmental benefits. Care is needed as green labeling may distort consumer decisions if undue prominence is given to environmental consequences as compared to other valued attributes, such as safety.
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Datt, Ragini Rina, Le Luo, and Qingliang Tang. "The impact of legitimacy threaton the choice of external carbon assurance." Accounting Research Journal 32, no. 2 (July 1, 2019): 181–202. http://dx.doi.org/10.1108/arj-03-2017-0050.
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Purpose The purpose of this study is to examine the impact of legitimacy threats on corporate incentive to obtain external carbon assurance. Design/methodology/approach The sample consists of the largest US companies that disclosed carbon emissions to CDP (formerly the Carbon Disclosure Project) over the period 2010-2013. Based on legitimacy theory, firms are more likely to obtain carbon assurance when they are under greater legitimacy threat. Carbon assurance is measured using CDP data. Three proxies are identified to measure legitimacy threat related to climate change: carbon emissions intensity, firm size and leverage. Findings This paper finds that firms with higher levels of emissions are more likely to obtain independent assurance, and large firms show the same tendency, as they are probably under pressure from their large group of stakeholders. In sum, the findings suggest that firms with higher carbon emissions face greater threats to their legitimacy, and the adoption of carbon assurance can mitigate risks to legitimacy with enhanced credibility of carbon disclosure in stakeholders’ decision-making. Research limitations/implications The study has some limitations. The authors have relied on CDP reports for analysis and focus on the largest companies in the US. Caution should be exercised when generalising the results to smaller firms, other countries or voluntary carbon assurance information disclosed in other communications channels. Practical implications This study provides extra insights into and an improved understanding of determinants and motivation of carbon assurance, which should be useful for policymakers to develop policies and initiatives for carbon assurance. The collective results should be useful for practicing accountants and accounting firms. Originality/value The paper investigates how legitimacy threats affect firms’ choice of external carbon assurance in the context of US, which has not been documented previously. It contributes to the understanding of legitimacy theory in the context of voluntary carbon assurance.
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Datt, Rina, Le Luo, Qingliang Tang, and Girijasankar Mallik. "An International Study of Determinants of Voluntary Carbon Assurance." Journal of International Accounting Research 17, no. 3 (August 1, 2018): 1–20. http://dx.doi.org/10.2308/jiar-52221.
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ABSTRACTDriven by a scarcity of literature on the issue, this study investigates corporate incentives for external carbon emissions assurance. Our sample comprises 5,184 firm-year observations across 44 countries between 2010 and 2014. The descriptive result suggests that 66 percent of the sample firms received assurance and the number of firms that adopted carbon assurance increased during the period investigated. We find that firms exposed to higher carbon risks are more likely to voluntarily seek carbon assurance. Moreover, firms that had adopted carbon reduction initiatives, with an environmental committee, with carbon reduction incentives, or with higher carbon disclosure scores tend to obtain assurance. Our study is based on a number of corporate social responsibility theories; namely, legitimacy, signaling, information asymmetry, and institutional theory. This study contributes to the literature by empirically testing the validity and applicability of these theories in the emerging field of nonfinancial assurance services.JEL Classifications: M42; Q54; Q56.
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Mikhailova, Elena A., Lili Lin, Zhenbang Hao, Hamdi A. Zurqani, Christopher J. Post, Mark A. Schlautman, Gregory C. Post, and Peyton I. Mitchell. "Climate Change Planning: Soil Carbon Regulating Ecosystem Services and Land Cover Change Analysis to Inform Disclosures for the State of Rhode Island, USA." Laws 10, no. 4 (December 2, 2021): 92. http://dx.doi.org/10.3390/laws10040092.
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The state of Rhode Island (RI) has established its greenhouse gas (GHG) emissions reduction goals, which require rapidly acquired and updatable science-based data to make these goals enforceable and effective. The combination of remote sensing and soil information data can estimate the past and model future GHG emissions because of conversion of “low disturbance” land covers (e.g., evergreen forest, hay/pasture) to “high disturbance” land covers (e.g., low-, medium-, and high-intensity developed land). These modeled future emissions can be used as a predevelopment potential GHG emissions information disclosure. This study demonstrates the rapid assessment of the value of regulating ecosystems services (ES) from soil organic carbon (SOC), soil inorganic carbon (SIC), and total soil carbon (TSC) stocks, based on the concept of the avoided social cost of carbon dioxide (CO2) emissions for RI by soil order and county using remote sensing and information from the State Soil Geographic (STATSGO) and Soil Survey Geographic Database (SSURGO) databases. Classified land cover data for 2001 and 2016 were downloaded from the Multi-Resolution Land Characteristics Consortium (MRLC) website. Obtained results provide accurate and quantitative spatio-temporal information about likely GHG emissions and show their patterns which are often associated with existing urban developments. These remote sensing tools could be used by the state of RI to both understand the nature of land cover change and likely GHG emissions from soil and to institute mandatory or voluntary predevelopment assessments and potential GHG emissions disclosures as a part of a climate mitigation policy.