Economic development and CSR assurance: Important drivers for carbon reporting… yet inefficient drivers for carbon management?

Abstract

This study contributes to the current climate debate by shedding some light on the driving forces of the disclosure and management of carbon emissions in the context of developed and developing economies. Our findings show that the probability of not reporting total carbon emissions is significantly higher in companies located in a developing than in a developed economy. In addition, the company's sustainability profile (the sustainability report, its assurance and the existence of a Corporate Social Responsibility (CSR) committee), gender diversity policies and other corporate variables (especially size), significantly increase the probability of disclosing total carbon emissions, Scope 1 and Scope 2. Regarding carbon management, however, there are no significant differences between developed and developing economies, and the evidence indicates that the existence of a CSR committee has a significant impact on emission reduction Scope 1 and Scope 2; while the size of the company only influences the reduction of emissions of Scope 2 – the other variables considered do not have a significant effect. The results obtained can be valuable for business executives, governments and government regulators by identifying corporate governance practices that could be improved and contribute strategically to the environmental situation in developed and developing countries.