Climate change disclosure and sustainable development goals (SDGs) of the 2030 agenda: the moderating role of corporate governance

Abstract

Purpose This study is justified by the economic importance of information on greenhouse gases, as well as the interest in the question of governance structure after the adoption of the objectives of the 2030 Agenda. The problem is also explained by the lack of research that has investigated the relationship between the best governance structure that contributes to achieving sustainability goals, including climate actions (SDG13) and clean energy adoption (SDG7) as part of the 2030 Agenda. Design/methodology/approach The level of disclosure is measured on the basis of the carbon disclosure score calculated by the carbon disclosure project (CDP). The study sample consists of 387 US companies that voluntarily participated in the CDP survey from 2011 to 2018. The authors use panel data analysis based on multiple regression models. Findings The results confirm the influential role of board size, director independence, the presence of women on the board and the presence of an environmental committee on carbon disclosure. In terms of carbon disclosure, the results suggest that a better governance structure is likely to reduce carbon emissions and improve carbon performance practices. Similarly, the analyses show a different representation of the role of corporate governance in high-carbon sectors compared to low-carbon sectors. Research limitations/implications This study has some limitations. First, the sample is only interested in US companies that responded to the CDP questionnaire during the period 2011–2018. Thus, the results cannot be generalized to countries with different governance structures. Second, the data from this study on carbon disclosure, specifically focuses on CDP reporting to determine the carbon disclosure score. In this sense, the findings on information disclosed do not necessarily address disclosures through other media, such as a company’s website or a press release. Originality/value Sustainability and commitment to the sustainable development goals (SDGs) are more likely to exist in companies that have good governance and, in particular, a better board. The research is inspired by the SDGs. The study aims to examine the relationship between carbon disclosure and corporate governance in the context of SDGs. Indeed, this research work contributes to achieving sustainability goals, including climate actions (SDG13) and clean energy adoption (SDG7).

The bidirectional relationship between corporate social responsibility and financial reporting quality: Does gender diversity matter? Evidence from US companies

“…In the same context, Bear et al (2010) find that the presence of female directors improves the company's reputation and brand image through engaging in CSR activities. Setó-Pamies (2015), Toukabri & Youssef (2022) argue that companies with a high percentage of female directors are more concerned with social responsibility activities. Fernandez-Feijoo et al (2012) confirm that board composed of at least three females, is an explanatory factor of CSR disclosure.…”

“…In this research, we examine the effect of the diversity of the audit committee in the board of directors on CSR in order to fill this gap in the accounting literature. (Galbreath, 2018; Horbach & Jacob, 2018; Hossain et al., 2017; Helfaya and Moussa, 2017; Husted & De Sousa‐Filho, 2018; Toukabri & Youssef, 2022). Indeed, in our study we suggest that women directors who are members of the audit committee encourage social responsibility (CSR) practices.…”

“…Moreover, political costs hypothesis supports that, managers may be inclined to manage earnings to reduce sensitivity to political pressure (Watts and Zimmerman, 1990) and CSR reporting is considered as a company's strategic response to inconsistencies between financial and social objectives (Sial et al., 2018). Otherwise, according to Stakeholders and legitimacy theories, CSR reporting is expected to be negatively related to manipulative financial reporting (Suyono & Farooque, 2018; Toukabri & Youssef, 2022). Such theories, suggest that having good relationships with various stakeholders is important to socially responsible firms.…”

“…As an internal governance mechanism, Arosa et al. (2013), Madhani (2017), Toukabri and Youssef (2022) demonstrate that board of directors plays an important role in the decision‐making process and in directing the company's attention toward CSR practices (Jamali et al., 2017; Rao & Tilt, 2016a). Certain boards of directors’ attributes are associated with higher quality governance and higher effectiveness in engaging in CSR practices (Muttakin et al., 2018).…”

“…(2010), Gallego‐Alvarez et al. (2010), Toukabri and Youssef (2022) show that female directors represent a competitive advantage that encourages boards to engage in social responsibility activities. Recent research confirms that female board members and managers are more willing to adopt a stakeholders’ approach and CSR reporting than males (Francoeur et al., 2019; Glass & Cook, 2018; Harjoto et al., 2015).…”