Climate governance and carbon emission disclosure

Abstract

Purpose The purpose of this study is to shed light on the influence of climate governance on carbon emission disclosure. Design/methodology/approach This study is based on S&P BSE 500 Indian firms over six years, i.e. from 2016–2017 to 2021–2022. The panel regression has been used to determine the association between climate governance and carbon emission disclosure. Findings The results of this study suggest that climate governance exerts a significant influence on corporate carbon emission disclosure. Moreover, results corroborate that climate governance elements such as the environment committee, carbon strategy and environment management system are critical contributors to carbon emission disclosure. Practical implications This study adds to the emerging literature on climate change, carbon emission disclosure, corporate governance and climate governance. Social implications This work provides valuable insights to corporate managers and policymakers as the study concludes that climate governance enhances firms’ carbon emission disclosure. Originality/value Earlier literature has examined the influence of corporate governance on carbon emission disclosure. However, this study extends to the corporate governance literature by providing novel insights into how integrating climate governance elements into corporate governance can influence carbon emission disclosure. Moreover, to the best of the authors’ knowledge, this study is the first to explore the association between climate governance and carbon emission disclosure in the Indian context.