Corporate commitment to climate change action and carbon performance: evidence from Asia-Pacific firms

Mohan Lal Jangid and Anil Kumar Sharma

Asian Review of Accounting, 2025, vol. 34, issue 1, 30-74

Abstract: PurposeThe study’s primary objective is to examine the association between corporate commitment to climate change action (CCCA) and the carbon performance of the firm. Furthermore, it investigates whether the corporate commitment to climate change action underlies firms’ climate change actions.Design/methodology/approachThe study uses a sample from 13 Asia-Pacific countries for a period spanning from 2015 to 2021 and employs the ordered logistic regression model to investigate the objectives.FindingsThe study finds a positive relationship between corporate commitment to climate change action and carbon performance. The results suggest that the new CDP ranking system accurately portrays carbon mitigation at the firm level and implies the corporations’ enhanced commitment to deal with climate change issues. Furthermore, this commitment underlies the firms’ increased actions to combat climate change. Additionally, country-level governance and cultural factors play a role in determining corporate commitment.Originality/valueThis study adds to the literature by empirically establishing the positive association between corporate commitment to climate change action and carbon performance. It also establishes the CDP’s new ranking system as an effective mechanism to negate the firms’ decoupling behaviour and legitimacy attempts through voluntary carbon disclosure. Additionally, the study unveils that the CDP ranks underscores firms’ increased efforts to prevent climate change.

Keywords: Corporate commitment to climate change action; Carbon performance; Climate change; Asia-Pacific; GHG emission; CDP (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-10-2024-0328

DOI: 10.1108/ARA-10-2024-0328

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