Committing to widespread disclosure of carbon impact
DOI:
https://doi.org/10.54695/bmi.154.612Keywords:
Carbon disclosure, firm carbon emissions, stakeholder communication.Abstract
This study examines the extent to which firms fully commit to the principle of widespread disclosure of their impact on the environment as opposed to meeting the
Carbon Disclosure Project (CDP) based standard disclosure practices. Using a large
cross-country panel of firms that have published their carbon emissions between
2008 and 2011, we show that the level of carbon management involvement by the
firm and exposure to environmental regulations increases the propensity for widespread environmental disclosure. Moreover, larger companies and highly leveraged
firms tend to communicate broadly on their carbon footprints, consistent with the
increased demand for information from stakeholders in such firms.