Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities

Elsayih, Jibriel; Datt, Rina; Tang, Qingliang; Hamid, Ali; Varua, Maria Estela

doi:10.1111/acfi.13086

Cited by 8 publications

(2 citation statements)

References 87 publications

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“…When corporate governance is of high quality, it fosters responsible decision-making and risk management throughout the organization (Issa, 2023). In the context of ERI, firms with robust corporate governance practices are more likely to prioritize sustainability objectives and incorporate emissions reduction efforts into their strategic plans (Elsayih et al , 2023; Toukabri and Youssef, 2023). This emphasis on responsible governance can result in more effective implementation of carbon management initiatives, leading to improved financial performance.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…The corporate governance system is one of the main determinants that ensure the effectiveness of a firm's carbon management. According to a study conducted by Elsayih et al (2023), which analyzes data from 1,035 firm-year observations of UK companies between 2011 and 2018, there is a strong and statistically significant association between internal governance and the quality of the carbon management system. Similarly, Toukabri and Youssef (2023) suggest that a stronger governance structure is expected to have a dual impact: reducing carbon emissions and enhancing carbon performance practices.…”

Section: Empirical Analysis Of Moderating Factorsmentioning

confidence: 99%

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Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors

Issa

2023

IJAIM

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Purpose This study aims to examine the relationship between carbon reduction initiatives and financial performance. Additionally, it explores potential moderating variables, such as corporate social responsible (CSR) strategy and corporate governance practices, that may strengthen the link between carbon reduction initiatives and financial performance. Design/methodology/approach The empirical analysis is conducted using 1,740 firm-year observations from UK firms listed on the FTSE 350. Data on carbon emissions and firm-specific characteristics are obtained from the Refinitiv Eikon database for the period 2011–2020. Various econometric techniques, including ordinary least squares and system generalized method of moments, are used to examine the relationship between carbon reduction initiatives and financial performance. Additionally, alternative samples are used to further explore this relationship. Findings The author observes a significantly positive association between carbon reduction initiatives and financial performance in this study. Additionally, the significance of this relationship is found to be present specifically after the announcement of the Paris Agreement. Furthermore, a channel analysis reveals that moderating factors like CSR strategy and corporate governance quality influence this relationship. Practical implications The study underscores the importance of carbon reduction initiatives for sustainable business growth and financial performance. Managers can use these insights to prioritize investments in sustainable practices. Policymakers should consider implementing supportive regulations to incentivize companies to adopt carbon reduction strategies. Originality/value This study adds value to the existing body of literature by empirically examining the moderating role of CSR strategy and best corporate governance practices in the relationship between carbon reduction initiatives and financial performance. The findings contribute to a deeper understanding of how these factors interact and influence the outcomes.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Empirical Analysis Of Moderating Factorsmentioning

confidence: 99%

Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors

Issa

2023

IJAIM

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Determinants of companies' commitment to climate change: Evidence based on European listed companies

Xhindole,

Tarquinio

2024

Journal of Public Affairs

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Climate change is a highly topical issue, and companies are increasingly required to report on their climate actions. This study assesses the influence of several factors affecting the companies' commitment towards climate change mitigation, adaptation, and transparency (i.e. CDP Integrtaed Performance Score). Therefore, by analysing the determinants of climate change commitment, the research aims to provide evidence and further insights on companies' responsiveness to climate challenges. Data are collected from Bloomberg's ESG database, and multiple linear regression analysis is performed on a sample of 3000 European‐listed companies responding to the carbon disclosure project (CDP) questionnaire. The results show that CDP Integrated Performance Score is associated with greenhouse gas emissions disclosure, Global Reporting Initiative (GRI) compliance, the presence of a Corporate Social Responsibility (CSR) committee and women on board, the number of employees, board and firm size. By contrast, assurance and ROE are non‐significant determinants for our sample. This study contributes to the existing research on climate change disclosure providing further insights on companies' climate change action. The findings are valuable for managers and regulators in promoting sustainability strategies and improving environmental performance and climate transparency.

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Addressing corporate governance and carbon accounting disclosure gaps: A path toward firms commitment to sustainable development goal 13

Zhu,

Wiredu,

Agyemang

et al. 2024

Sustainable Development

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The study examined the relationship between corporate governance and carbon accounting disclosure (CAD) in the Middle East and North Africa (MENA) to address how firms can achieve sustainable development goal (SDG) 13. We employed purposive sampling to select 277 companies from 20 MENA countries from the period 2012–2022. A favorable relationship was found between board independence and CAD. Gender diversity was also found to have a beneficial effect on CAD. The sustainability committee and CAD also had a positive and significant connection. A positive association was also found between foreign nationals and CAD. We found positive and significant connection between board meetings and CAD. In contrast, we found a negative relationship between board size and CAD, as well as between boards with CEOs duality and CAD. We also found that shareholding proportion has inverse but insignificant impact on CAD. The results concur that corporate boards have a role to reduce carbon emission in MENA to accomplish SDG 13.

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Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities

Cited by 8 publications

References 87 publications

Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors

Do emissions reduction initiatives improve financial performance? Empirical analysis of moderating factors

Determinants of companies' commitment to climate change: Evidence based on European listed companies

Addressing corporate governance and carbon accounting disclosure gaps: A path toward firms commitment to sustainable development goal 13

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