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Corporate environmental reporting: Are French firms compliant with the Task Force on Climate Financial Disclosures' recommendations?

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  • Samira Demaria
  • Sandra Rigot

Abstract

This article deals with the practices of French corporate environmental disclosure with a focus on climate‐related risks. In particular, it aims to analyse the compliance of CAC 40 firms with the recommendations of the Task Force on Climate‐related Financial Disclosures (2017), an international initiative made up by Financial Stability Board to enhance financial transparency. On the basis of a content analysis of firms' reference documents spanning 2015–2018, we constructed the Climate Compliance Index (CCI) to evaluate whether firms disclose information on climate risks and opportunities about governance, strategy, risk management and metrics. Our results highlight a gradual increase of the CCI despite disparities across sectors and management areas. The content analysis allows us to develop a set of indicators frequently reported by domain and to identify and define climate risks and opportunities and their financial impacts per sector, which is a first step to improve the disclosure of non‐financial information.

Suggested Citation

  • Samira Demaria & Sandra Rigot, 2021. "Corporate environmental reporting: Are French firms compliant with the Task Force on Climate Financial Disclosures' recommendations?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 721-738, January.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:1:p:721-738
    DOI: 10.1002/bse.2651
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    2. David Coen & Kyle Herman & Tom Pegram, 2022. "Are corporate climate efforts genuine? An empirical analysis of the climate ‘talk–walk’ hypothesis," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3040-3059, November.
    3. Paola Vola & Lorenzo Gelmini, 2022. "Climate change skills for the new CFOs. A preliminary analysis on TCFD by Italian listed companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 189-209.
    4. Annabelle Braasch & Patrick Velte, 2023. "Climate reporting quality following the recommendations of the task force on climate‐related financial disclosures: A Focus on the German capital market," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 926-940, April.
    5. Udeke Huiskamp & Bauke ten Brinke & Gert Jan Kramer, 2022. "The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1763-1775, May.
    6. Callan Harker & Maureen Hassall & Paul Lant & Nikodem Rybak & Paul Dargusch, 2022. "What Can Machine Learning Teach Us about Australian Climate Risk Disclosures?," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    7. Ayman Hassan Bazhair & Saleh F. A. Khatib & Hamzeh Al Amosh, 2022. "Taking Stock of Carbon Disclosure Research While Looking to the Future: A Systematic Literature Review," Sustainability, MDPI, vol. 14(20), pages 1-24, October.
    8. Jeanne, Amar & Demaria, Samira & Rigot, Sandra, 2023. "What are the drivers of corporates' climate transparency? Evidence from the S&P 1200 index," Ecological Economics, Elsevier, vol. 213(C).
    9. Julia Bettina Leicht & Maximilian Leicht, 2022. "Changes in the climate-related disclosure of German listed companies during the first years of the new reporting standard," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    10. Salvatore Principale & Simone Pizzi, 2023. "The Determinants of TCFD Reporting: A Focus on the Italian Context," Administrative Sciences, MDPI, vol. 13(2), pages 1-12, February.
    11. Yang Liu & Ling Tang, 2024. "Environmental Penalties, Internal and External Governance, and Green Innovation: Does the Deterrence Effect Work?," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    12. Ruiqin Mou & Tao Ma, 2023. "A Study on the Quality and Determinants of Climate Information Disclosure of A-Share-Listed Banks," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    13. Bingler, Julia Anna & Kraus, Mathias & Leippold, Markus & Webersinke, Nicolas, 2024. "How cheap talk in climate disclosures relates to climate initiatives, corporate emissions, and reputation risk," Journal of Banking & Finance, Elsevier, vol. 164(C).

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