Disclosure Of Greenhouse Gas Emissions Research Articles

Supply chains (Scope 3) toward sustainable food systems: An analysis of food & beverage processing corporate greenhouse gas emissions disclosure

To align business activities with the Paris Agreement goal to limit global warming to 1.5°, companies may disclose and set targets to mitigate their emissions. The global food system contributes up to 37% of total annual emissions. Major food & beverage processing companies heavily contribute to food system emissions through their supply chains. Despite this, sector-specific analysis of the status and quality of scope 3 emissions for food & beverage processing companies is lacking. Using 2018 CDP data to build a sample of 153 companies, the authors describe the state of voluntary disclosure, particularly for scope 3, for food & beverage processing companies. Further, the paper investigated the effect of emissions performance, national environmental policy, international negotiation group, and primary activity on scope 3 disclosure. It also examined the effect of primary activity, scope 3 disclosure, and national environmental policy and international negotiation group on direct- and energy-related emissions performance. The authors found scope 3 disclosure in the food & beverage processing sector was incomplete and inconsistent. The 2018 Environmental Performance Index score and the international negotiating group of a company's headquarter country were significant predictors of scope 3 disclosure by category. Firm size (by revenue) was the only significant predictor of direct and energy-related (scopes 1 and 2) emissions, but was not correlated with improved emissions performance. The authors concluded with a set of recommendations to improve the availability and transparency of scope 3 emissions data, and invited further research into sector-specific scope 3 disclosure, performance, effect of firm size and climate policy at the national and international levels. • Scope 3 disclosures by F&B processing companies lacked completeness and consistency. • Annual revenue predicted scope 1 & 2 emissions, larger firms were not more efficient. • Proposed ranking index for qualitative comments on relevant scope 3 category disclosures. • EPI score and UNFCCC alliance of firm home country explain scope 1 and 2 emissions intensity. • EPI score and UNFCCC alliances of firm home country explain completeness of scope 3 disclosure.

Executive Compensation, Disclosure of Greenhouse Gas Emissions and Firm Value

<p><em>This study aims to determine the effect of executive compensation on firm value through greenhouse gas emissions disclosure as a mediation variable. Population in this research are firms listed in the Indonesia Stock Exchange (IDX) and published sustainability reports for the period 2015 to 2019. The sample determination in this study used a purposive sampling method and obtained 150 companies. The data analysis technique in this research is using Partial Least Square (PLS) test. </em><em>This study shows that executive compensation has a significant positive effect on firm value but does not affect greenhouse gas emissions disclosure. Greenhouse gas emissions disclosure has no significant effect on firm value. </em><em>This research contributes to the relationship of literature about the greenhouse gas emissions being able to mediate partially the effect of executive compensation on firm value. Furthermore, it also addresses greenhouse gas emission and executive compensation using company samples and periods that have not been explored previously.</em></p>

CEO Overconfidence and Voluntary Disclosure of Greenhouse Gas Emissions: With a Focus on the Role of Corporate Governance

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.

The Potential and Limits of Environmental Disclosure Regulation: A Global Value Chain Perspective Applied to Tanker Shipping

Abstract Exploring how transnational environmental governance and the operation of global value chains (GVCs) intersect is key in explaining the circumstances under which mandatory disclosure can improve the environmental footprint of business operations. We investigate how the governance dynamics of the tanker shipping value chain (a major emitter of greenhouse gases) limits the effectiveness of the European Union (EU) monitoring, reporting, and verification (MRV) regulation, which mandates the disclosure of greenhouse gas emissions for ships calling at EU ports. Although MRV seeks to help shipowners and ship managers save fuel and reduce emissions, it does not address the complexity of power relations along the tanker shipping value chain and currently cannot disentangle how different actors influence the design, operational, commercial, and ocean/weather factors that together determine fuel consumption. In particular, the EU MRV neglects to reflect on how oil majors exert their power and impose their commercial priorities on other actors, and thus co-determine fuel use levels. We conclude that, in its current form, the EU MRV is unlikely to lead to significant environmental upgrading in tanker shipping. More generally, we argue that regulators seeking to facilitate environmental upgrading need to expand their focus beyond the unwanted behaviors of producers of goods and providers of services to also address the incentive structures and demands placed on them by global buyers.

Voluntary disclosure of greenhouse gas emissions by cities under carbon disclosure project: A sustainable development approach

AbstractToday's world is facing a serious challenge of high carbon emissions. A large number of studies are examining the deteriorating impact of carbon emissions at the country or firm level, but the literature on the voluntary carbon disclosure project (CDP) by cities is not rich. Therefore, this study seeks to examine the effect of the population (Pop) and gross domestic product (GDP) on carbon emissions of cities by using data of CDP. The dataset refers to a set of numerous cities from around the world, spanning the period from 2012 to 2016. Random effects panel regression and generalized method of moments (GMM), and quantile regressions techniques have been employed to empirically investigate the discussed relationship and to control the potential endogeneity issues, respectively. According to the results, population and GDP are substantial predictors of carbon emissions in sampled cities. Findings show that not only factories contribute to increasing carbon emissions rate, but cities are equally responsible for these emissions as they put no checks on their economic growth and population. The findings are also robust for policy implications.

Factors Influencing the Greenhouse Gas Emissions Disclosure at Manufacture Company in the Indonesia Stock Exchange

This study aims to examine empirically the factors that influence greenhouse gas emission disclosure. Factors examined in this research are a type of industry, firm size, profitability, and leverage. In this study, the researcher adopted the checklist issued by the Carbon Disclosure Project (CDP) to measure the extensive disclosure of greenhouse gas emissions. To examine the factors, the researcher utilized multiple regression. The population of this study was all manufacturing companies listed on the Indonesian Stock Exchange in 2018. This research applied the purposive sampling method to obtain 131 listed manufacturing in 2018. The result implies that firm size has a positive and significant correlation with greenhouse gas emission disclosure. Meanwhile, type of industry, profitability, and leverage had no significant correlation with greenhouse gas emission disclosure. Manufacturing companies, especially greenhouse gas-intensive companies, must participate in protecting the environment and help reduce greenhouse gas emissions as stipulated in Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions. In line with the concept of performance measurement of "Triple Bottom Line," the company does not only pay attention to profit (profit) and people (social), the company must also pay attention to the planet (environment). So the company can compete with other companies. The results highlighted that the much resources of the company, the better the company is conducting a greenhouse-gas-emission reduction strategy. It makes it easier for the company to do the disclosure of greenhouse gas emissions.

Factors Influencing the Greenhouse Gas Emissions Disclosure at Manufacture Company in the Indonesia Stock Exchange

This study aims to examine empirically the factors that influence greenhouse gas emission disclosure. Factors examined in this research are a type of industry, firm size, profitability, and leverage. In this study, the researcher adopted the checklist issued by the Carbon Disclosure Project (CDP) to measure the extensive disclosure of greenhouse gas emissions. To examine the factors, the researcher utilized multiple regression. The population of this study was all manufacturing companies listed on the Indonesian Stock Exchange in 2018. This research applied the purposive sampling method to obtain 131 listed manufacturing in 2018. The result implies that firm size has a positive and significant correlation with greenhouse gas emission disclosure. Meanwhile, type of industry, profitability, and leverage had no significant correlation with greenhouse gas emission disclosure. Manufacturing companies, especially greenhouse gas-intensive companies, must participate in protecting the environment and help reduce greenhouse gas emissions as stipulated in Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions. In line with the concept of performance measurement of "Triple Bottom Line," the company does not only pay attention to profit (profit) and people (social), the company must also pay attention to the planet (environment). So the company can compete with other companies. The results highlighted that the much resources of the company, the better the company is conducting a greenhouse-gas-emission reduction strategy. It makes it easier for the company to do the disclosure of greenhouse gas emissions.

Pengaruh Pengungkapan Emisi Gas Rumah Kaca terhadap Nilai Perusahaan dengan Biaya Lingkungan sebagai Variabel Moderasi

Global warming is caused by an increase in greenhouse gas emissions in the atmosphere, so companies must take responsibility for this through activities to reduce emissions. The purpose of this study is to examine whether environmental costs can moderate the disclosure of greenhouse gas emissions against firm value. This research is a type of quantitative analysis. The sampling technique used purposive sampling. The collecting data through literature study, documentation and secondary data from the Indonesia Stock Exchange 2014-2018. The data analysis technique used the WarpPls 4.0 analysis. They are testing the data using the inner model and outer model methods. This study indicates that GHG emission disclosure has a negative and significant effect on firm value. Environmental costs also have a negative and significant impact on firm value. Meanwhile, ecological prices are not able to moderate the impact of GHG emission disclosures on company value.

In the Name of COVID-19: Is the ECB Fuelling the Climate Crisis?

We offer preliminary evidence drawing on a novel dataset of corporate bonds issued in the European energy sector since January 2020 in combination with the European Central Bank’s (ECB) purchases under the Pandemic Emergency Purchase Programme (PEPP) in response to COVID-19. We show that the likelihood of a European energy company bond to be bought as part of the ECB’s programme increases with the greenhouse gas (GHG) intensity of the bond issuing firm. We also find weaker evidence that the ECB’s PEPP portfolio during the pandemic is likely to become tilted towards companies with anti-climate lobbying activities and companies with less transparent GHG emissions disclosure. Our findings imply that, at later stages of the COVID-19 recovery, an in-depth analysis may be necessary to understand if, and if yes why, the ECB fuelled the climate crisis.Electronic supplementary materialThe online version of this article (10.1007/s10640-020-00450-z) contains supplementary material, which is available to authorized users.

Greenhouse gas emissions disclosure: comparing headquarters and local subsidiaries

PurposeThis paper aims to highlight the greenhouse gas emissions disclosures in sustainability reports of the automotive industry both from headquarters and Turkish subsidiaries. Further, it aims to understand to what extent these corporations disclose greenhouse gas (GHG) emissions.Design/methodology/approachThe sample of the research consists of the global brands Ford, Honda, Hyundai, Daimler and Fiat. Global and national sustainability reports from headquarters and local subsidiaries are examined. To determine the disclosure for emissions content analysis is conducted. The GRI 305: Emissions standard, which sets out the reporting requirements on the issue emissions is used to identify the disclosures both from headquarters and subsidiaries.FindingsThe sector-specific findings show that all sustainability reports from headquarters disclose much more specific information on greenhouse gas emissions than the reports from subsidiaries. Corporations that offer the most comprehensive sustainability reports disclose the least pages in environmental information. However, presenting the least information does not mean that these reports are rare in quality. Especially, two corporations who offer the least pages on environmental issues fully disclosed the classification of GRI 305: Emissions standard. It can be stated that these corporations emphasize the quality and not the quantity of disclosure. Although, local subsidiaries are not reporting to the extent as headquarters do good applications together with specific information are applied.Originality/valueThe investigation contributes to the research on corporate social responsibility (CSR) by exploring the GHG emissions disclosures across borders by analyzing sustainability reports of both the headquarters of the automotive industry and their local subsidiaries as the actual production units in Turkey.

An examination of assurance practices on Turkish companies greenhouse gas emissions disclosures

Purpose- The aim of this study is to examine the status of assuring practices of GHG disclosures of Turkish companies, using the data available from the Carbon Disclosure Project (CDP) Turkey surveys for the period of 2015-2017. More specifically, it is aimed to determine the number of companies that assured their GHG emission disclosures, the scope of assurance, the types of assurance providers, the assurance level and the standards employed for the assurance of GHG disclosures. Methodology- The sample of the study is obtained from the CDP Database. In this study, we selected Turkish companies that answered the CDP questionnaire between the years of 2015 and 2017. Findings- The number of the total submitted CDP reports and the assured reports have an upward trend during the sample period. Nevertheless, it is observed that the number of reports having assurance services increased rapidly in those years. This shows that verified information has been more demanded by stakeholders. Conclusion- The increasing trend in the number of companies assuring their GHG disclosures presents opportunities for audit firms and other assurance service providers.

Factors Influencing The Greenhouse Gas Emission Disclosure on Manufacturing Firms in Indonesia

Greenhouse gas (GHG) emission disclosure study is interesting to be investigated in recent years. Nevertheless, the results are still varying. This research investigated the influence of firm size, Return on Asset (ROA), leverage and environmental performance on GHG emission disclosures of listed manufacturing firms of Indonesia Stocks Exchange (IDX). Multiple regression methodology employed in this study. Sample used was 36 firms that consisted of manufacturing companies in the ranking of PROPER and IDX during 2015-2017. It was found that firm size and environmental performance had an effect on the GHG emission disclosure while ROA and leverage did not have effect. Furthermore, large companies tend to carry out information on GHG emissions disclosures voluntarily than the small one. It indicates that the ranking of PROPER motivated large firms to give information of GHG emission. This finding supported the previous studies in which firm size influenced the GHG emission disclosure.

Corporate voluntary greenhouse gas reporting: Stakeholder pressure and the mediating role of the chief executive officer

AbstractThe study sheds light on the extent to which various stakeholder pressures influence voluntary disclosure of greenhouse gas (GHG) emissions and how the impact is explained and moderated chief executive officer (CEO) characteristics of 215 FTSE 350 listed U.K. companies for the year 2011. The study developed a classification of GHG emission disclosure based on the guidelines of GHG Protocol, Department for Environment, Food and Rural Affairs, and Global Framework for Climate Risk Disclosure using content analysis. Evidence from the study suggests that some stakeholder pressure (regulatory, creditor, supplier, customer, and board control) positively impacts on GHG disclosure information by firms. We found that stakeholder pressure in the form of regulatory, mimetic, and shareholders pressure positively influenced the disclosure of GHG information. We also found that creditor pressure also had a significant negative relationship with GHG disclosure. Although CEO age had a direct negative effect on GHG voluntary disclosure, its moderation effect on stakeholder pressure influence on GHG disclosure was only significant on regulatory pressure.

Corporate Social Responsibility and Imperfect Regulatory Oversight: Theory and Evidence from Greenhouse Gas Emissions Disclosures

Corporate Social Responsibility and Imperfect Regulatory Oversight: Theory and Evidence from Greenhouse Gas Emissions Disclosures

In the Name of COVID-19: Is the ECB Fuelling the Climate Crisis?

We offer preliminary evidence drawing on a novel dataset of corporate bonds issued in the European energy sector since January 2020 in combination with the European Central Bank’s (ECB) purchases under the Pandemic Emergency Purchase Programme (PEPP) in response to COVID-19. We show that the likelihood of an European energy company bond to be bought as part of the ECB’s programme increases with the greenhouse gas (GHG) intensity of the bond issuing firm. We also find weaker evidence that the ECB’s PEPP portfolio during the pandemic is likely to become tilted towards companies with anti-climate lobbying activities and companies with less transparent greenhouse gas (GHG) emissions disclosure. Our findings imply that, at later stages of the COVID-19 recovery, an in-depth analysis maybe necessary to understand if and if yes, why the ECB fuelled the climate crisis.

Institutional Investor Legal Origins and Corporate GHG Emissions Disclosure Quality

The disclosure of corporate environmental performance is an increasingly important element of a firm’s ethical behavior. Building on stakeholder theory and legitimacy arguments as well as prior research that proposes legal origin as a major determinant of corporate social responsibility (CSR), we examine how foreign institutional ownership and its legal origin affect the quality of carbon disclosure. Using a large sample of firms from 36 countries, we find that foreign institutional owner-ship from civil law countries improves the quality of a firm’s greenhouse gas (GHG) emissions reporting, as indicated by emissions verification levels and Carbon Disclosure Project scores. This relation is robust to addressing endogeneity and selection bias. This relation is more pronounced in firms from non-climate-sensitized countries, for which the gap between firms’ CSR standards and investors’ CSR targets is potentially larger, and in less international firms. Further analyses indicate that firms with a better GHG emissions reporting quality exhibit higher valuations.

Women on Boards and Greenhouse Gas Emission Disclosures and Impact on Corporate Reputation

The purpose of this research was to investigate the effect of the existence of women on boards on gas emissions disclosure, the influence of gas emissions disclosure on corporate reputation, and to investigate the effect of the existence of women on boards on corporate reputation mediated by gas emissions disclosure. Population used is the whole company public listed in Indonesia Stock Exchange period 2013- 2015. Number of samples are 73 firms each year, was selected by purposive sampling method and using secondary data, i.e. the annual report. The analytical method used is path analysis and hypothesis mediation analysed by using Sobel test. The result of analysis show that the existence of women on boards have positive but not significant effect on gas emission disclosure. While gas emission disclosure have positive and significant effect on corporate reputation. This research also shows that the gas emission disclosure plays a role in mediating the existence of women on boards on corporate reputation, while gas emission disclosure mediate the effect of the existence of women on boards on corporate reputation. The implication is the firms should pay more attention to the company's relationship with the surrounding environment so that the company's image can be improved because the firm’s sustainability are not only determined by the level of profitability, but also they have to combine economic performance, the concentration of social justice, and responsibility towards environmental sustainability.

Greenhouse gas emissions disclosure by cities: the expectation gap

PurposeCities are crucial to reducing greenhouse gas (GHG) emissions. This paper aims to explore the quality of GHG disclosures by cities via the Carbon Disclosure Project (CDP) and compares them with the expectations of users.Design/methodology/approachThe expectation gap framework is used to examine the GHG disclosure quality of 42 cities. User expectations are determined via a literature review and CDP documentation. City disclosures are reviewed using content analysis.FindingsGHG information at the city level is outdated, incomplete, inconsistent, inaccurate and incomparable and, therefore, to meet user expectations, improvement is needed.Research limitations/implicationsThe findings have implications for policymakers, stakeholders and managers. Guidelines are required for better disclosure of GHG information relating to cities, and stakeholders need to develop better skills to understand emissions information. Managers have a responsibility to measure, disclose and mitigate GHG emissions to meet the expectations of stakeholders.Originality/valuePrior studies focus on GHG disclosures via the CDP by corporations. This is the first accounting study to examine GHG disclosures by cities via the CDP. The expectation gap framework is a novel approach to sustainability disclosure research.

A comparison of voluntary and mandated climate change-related disclosure

This study draws on legitimacy theory to investigate the relationship between mandatory disclosure of greenhouse gas emissions by companies that are subject to specific environmental legislation (the Australian National Greenhouse Energy Reporting Act 2007) and the level of voluntary environmental disclosures. Using a sample of 535 observations, we find that i) Overall, legislation-affected companies increase their disclosures compared with non-affected companies, ii) As many companies reduce their disclosures as increase them, iii) there is an increase in the level of emissions volume disclosures in legislation-affected companies compared with the same company pre-implementation, iv) legislation-affected higher emitters have higher levels of voluntary disclosures. These findings are consistent with legitimacy theory, which predicts differential disclosures in circumstances to avoid scrutiny.

What Drives Voluntary Greenhouse Gas Emissions Disclosure?

Voluntary disclosure should naturally arise in theory but may not in practice due to real-world frictions. This is important as self-selection bias could lead to erroneous results in statistical analyses of the disclosed data. This paper investigates climate-related disclosure in a comprehensive, global panel of publicly listed firms from 2010-2017, studying a diverse set of firm, sector and geographic characteristics, as predictors of voluntary response to the largest standardized climate-related reporting portal. The patterns I uncover demonstrate evidence of strong behavioral factors as well as being consistent with theories of voluntary disclosure which emphasize the role of disclosure costs and verifiability. Unsurprisingly, I find that firm size, sector, and past response quality predict response. The staged introduction of a reporting fee on the portal provides results that are particularly striking, with the small fee being associated with a significant decrease of up to 3% in the response rate of firms reporting non-assured information but with only an insignificant effect on assured reporters. These results have implications for policymakers seeking to make sustainability disclosure an integral part of financial disclosure, as well as for institutional investors seeking to understand the quality of climate-related disclosures.