Carbon Emissions and TCFD-Aligned Climate-Related Information Disclosures

50 Pages Posted: 1 Jun 2022

See all articles by Dong Ding

Dong Ding

University of Wollongong

Bin Liu

University of Wollongong

Millicent Chang

University of Wollongong

Date Written: December 18, 2021

Abstract

We explore corporate environmental accountability by examining how carbon emissions affect voluntary climate-related information disclosure based on TCFD principles. Using computerized textual analysis to measure such climate-related disclosure, our results show that firms with higher levels of carbon emissions disclose more climate-related information. This relation is stronger in firms belonging to carbon intensive industries, such as energy, materials, and utilities. We also examine this relationship at the category level for Governance, Strategy, Risk Management, and Metrics and Targets, finding that carbon emissions drive disclosure in all categories except in Governance. Overall, our findings indicate that high carbon emitting firms appear to discharge their corporate accountability by increasing climate-related disclosure, consistent with legitimising their potentially unethical actions and submitting to stakeholder and societal pressure.

Keywords: climate change, voluntary climate-related information disclosure, carbon emission, greenhouse gas emissions, carbon performance, environmental disclosure, environmental performance, information asymmetry

JEL Classification: G15, G38

Suggested Citation

Ding, Dong and Liu, Bin and Chang, Millicent, Carbon Emissions and TCFD-Aligned Climate-Related Information Disclosures (December 18, 2021). Available at SSRN: https://ssrn.com/abstract=4098231 or http://dx.doi.org/10.2139/ssrn.4098231

Dong Ding

University of Wollongong ( email )

Northfields Avenue
Wollongong, New South Wales 2522
Australia

Bin Liu

University of Wollongong ( email )

Northfields Avenue
Wollongong, NSW 2522
Australia

Millicent Chang (Contact Author)

University of Wollongong ( email )

Northfields Avenue
Wollongong, New South Wales 2522
Australia

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