Voluntary disclosure, greenhouse gas emissions and business performance: Assessing the first decade of reporting

• DOI: 10.1016/j.bar.2017.02.002
• Publication Date: 2017-03-01T21:31:41Z
• Authors: David C. Broadstock; Alan Collins; Lester C. Hunt; Konstantinos Vergos
• Keywords: Endogeneity; Robustness; Voluntary disclosure; Turnover; Empirical evidence

This study explores the empirical relationships between GHG emissions and an extensive range of business performance measures for UK FTSE-350 listed firms over first decade or so such reporting. Despite popular policy generated environmental imperatives this period—along with growing evidence corporate added-value having ‘environmental conscience’, voluntary disclosure has been slow to adopt by firms. The leading contribution is present clear a non-linear relationship, initially increasing firm then decreasing. An pattern non-reporting also observed time, prior literature introduced questions endogeneity existing emissions. Steps are taken ensure confidence/robustness results these concerns. Accordingly, two-stage (Heckman-type) selection model used analyse emissions-performance nexus conditional upon choosing report (i.e. treating choice as being endogenously determined performance). From this—in addition confirming robustness relationship—it can be that decision not directly influenced wider social/governance attitudes firm, thus suggesting disassociate responsibility from social responsibility.