The Impact of Corporate Characteristics on Climate Governance Disclosure

Petra F. A. Dilling (), Peter Harris and Sinan Caykoylu
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Petra F. A. Dilling: School for Graduate Studies, SUNY Empire State University, Saratoga Springs, NY 12866, USA
Peter Harris: School of Management, New York Institute of Technology, New York, NY 10023, USA
Sinan Caykoylu: School of Management, New York Institute of Technology, Vancouver, BC V5M 4X5, Canada

Sustainability, 2024, vol. 16, issue 5, 1-31

Abstract: This study examines the impact of corporate characteristics on climate change governance among 100 of the world’s largest companies, with 1400 observations in the fiscal year 2020. We consider variables such as company location, size, profitability, female board representation, years of reporting using Task Force on Climate-Related Financial Disclosures (TCFD) guidelines, the inclusion of UN Global Compact and Global Reporting Initiative (GRI) information, Dow Jones Sustainability Index (DJSI) membership, MSCI ESG ratings, and the presence of a climate transition plan, a sustainability executive, and a sustainability board committee. Applying a multi-theoretical framework, we employ correlation analysis and univariate and multiple linear regressions to assess the relationships. Our findings reveal positive correlations between climate governance and the presence of a climate transition plan, MSCI ratings, DJSI membership, and the existence of a sustainability executive. Additionally, companies located in developed countries exhibit significantly higher levels of climate change governance. These results hold across various scenarios, offering valuable insights for researchers, academics, business leaders, practitioners, and regulators. With the growing importance of climate change reporting, understanding the key contributing factors for effective climate governance is crucial for organizations seeking to address this critical issue.

Keywords: climate change; climate governance; sustainability; voluntary disclosure; carbon emissions; disclosure quality; sustainability officer; non-financial reporting; CSR reporting; disclosure quality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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