The emission trading system, risk management committee and voluntary corporate response to climate change – a CDP study
Year: 2019
Type: article
Abstract: Purpose The purpose of this study is to examine the impact of emission trading system, board risk management committee and firm age on firms’ responsiveness to climate change in Carbon Disclosure Project (CDP) 2011. More specifically, this study investigates whether global corporation’s responses on carbon-related disclosure are influenced by some specific attributes. Design/methodology/approach The study covers a sample of 500 companies in 38 countries in 12 geographical locations. It uses the carbon disclosure scores in the CDP 2011 as the dependent variable. The authors estimate the OLS regression model to investigate the hypotheses. Findings The findings demonstrate that the presence of an emission trading system, a board risk management committee and the firm age have a significant positive relationship with carbon disclosure scores (i.e. CDP scores). However, the impacts of the board risk management committee and firm age on CDP scores are not moderated by the emission trading system at the firm level, suggesting that they have an independent and substitutive effect on climate change-related risk disclosure. Originality/value The study may be of relevance to investors and other stakeholders in evaluating the accountability of companies in relation to strategies for managing climate risk.
Authors: Mohammed Hossain, Omar Farooque
Institutions: Griffith University, University of New England
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W2922065677