Corporate climate change disclosure practices and regulation: the influence of institutional investors

Cotter, Julie and Najah, Muftah (2013) Corporate climate change disclosure practices and regulation: the influence of institutional investors. In: Institutional investors’ power to change corporate behaviour: international perspectives. Critical Studies on Corporate Responsibility, Governance and Sustainability, 5. Emerald Group Publishing Limited, Bingley, United Kingdom, pp. 81-97. ISBN 978-1-78190-770-2

Abstract

This chapter reviews the influence that institutional investors have on corporate climate change disclosures and related reporting regimes.

Approach: We overview recent research undertaken by the authors that provides evidence of the influence of institutional investors on voluntary reporting of climate change information in annual and sustainability reports. In addition, this chapter considers the influence of institutional investors on climate change disclosure regulation and the use of climate change information by investors.

Findings: The material presented in this chapter indicates that institutional investor coalitions have been internationally influential in determining the extent and content of climate change disclosures of large corporations. The CDP annual questionnaire has been particularly influential. The influence of other initiatives such as development of the CDSB reporting framework is not yet clear. Further, the ability of institutional investor coalitions to influence the regulation of climate change disclosure is uncertain; since most national governments have not yet headed requests for greater regulation.

Research implications: Several avenues for future research are identified including a consideration of the trade-offs between investor information demands, costs of compliance and a desire for concise reporting; investor decision making processes as well as the impediments to use of the information currently available; and the validity of the perception that increased disclosure requirements assists with driving emissions reductions and ensuring adequate consideration of climate change risks.

Value: The material presented in this chapter is expected to be useful for informing the continuing debate around the regulation of and/or provision of guidance to companies about the disclosure of climate change related information to investors and other stakeholders.


Statistics for USQ ePrint 25468
Statistics for this ePrint Item
Item Type: Book Chapter (Commonwealth Reporting Category B)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 04 Sep 2014 07:14
Last Modified: 15 Mar 2018 02:42
Uncontrolled Keywords: climate change disclosure, institutional investors, disclosure regulation
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
05 Environmental Sciences > 0502 Environmental Science and Management > 050205 Environmental Management
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150106 Sustainability Accounting and Reporting
Socio-Economic Objective: D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
Identification Number or DOI: 10.1108/S2043-9059(2013)0000005012
URI: http://eprints.usq.edu.au/id/eprint/25468

Actions (login required)

View Item Archive Repository Staff Only