Work

Do Corporate Governance Mechanisms Help to Reduce Carbon Emissions? Some Empirical Evidence on Listed Companies in France, Germany, the United Kingdom, and Japan

Year: 2025

Type: article

Abstract: ABSTRACT Climate change is one of the greatest challenges facing humanity today. In this paper, we analyze the role of firms in mitigating climate change through their model of corporate governance. We examine the impact of key organizational control and incentive mechanisms on firms' carbon emission intensity. Using a panel of 305 listed firms in France, Germany, the United Kingdom, and Japan over the period 2015–2021, we show that board gender diversity plays a crucial role in reducing both firms' direct and indirect carbon emissions. Moreover, the presence of a sustainability committee can be an effective arrangement to limit direct GHG emissions. However, our study finds no significant evidence for the variables of board size, board independence, and top sustainability‐based executive compensation. Our findings vary depending on the high‐ or low‐emission sector. Based on these results, we propose several managerial and policy implications that can help improve corporate climate performance.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.4332

Authors: Cécile Cezanne, Gaye Del Lo, Yves Kassi, Sandra Rigot

Institutions: Centre National de la Recherche Scientifique, Université Côte d'Azur, Groupe de Recherche en Droit, Économie, Gestion, Université Sorbonne Paris Nord, CEPN - Centre d'Economie de l'Université Paris Nord

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $4,480