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The Impact of Carbon Disclosure on Financial Performance under Low Carbon Constraints

Author

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  • Wenting Lu

    (School of Finance & Economics, JiangSu University, No. 301 Xuefu Road, Jingkou District, Zhenjiang 212013, China)

  • Naiping Zhu

    (School of Finance & Economics, JiangSu University, No. 301 Xuefu Road, Jingkou District, Zhenjiang 212013, China)

  • Jing Zhang

    (School of Finance & Economics, JiangSu University, No. 301 Xuefu Road, Jingkou District, Zhenjiang 212013, China)

Abstract

In the context of low-carbon constrained development, in order to avoid the risk brought by climate change, more and more companies choose to disclose carbon information, respond to the national policy of carbon emission reduction and focus on the sustainable development of enterprises. This paper will investigate the impact of carbon disclosure on financial performance based on the 2011–2018 CDP report, taking the Fortune 500 companies as a sample. The study finds that for carbon-intensive industries, carbon disclosure cannot significantly contribute to the improvement of financial performance in the current period, but for carbon-non-intensive industries, carbon disclosure can significantly contribute to the improvement of financial performance in the current period, and the positive impact of carbon disclosure on financial performance in the current period can be extended to the next period. Finally, based on the findings of the empirical study, this paper puts forward policy recommendations for the construction of China’s carbon disclosure system.

Suggested Citation

  • Wenting Lu & Naiping Zhu & Jing Zhang, 2021. "The Impact of Carbon Disclosure on Financial Performance under Low Carbon Constraints," Energies, MDPI, vol. 14(14), pages 1-19, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4126-:d:591015
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    References listed on IDEAS

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    6. Chensi Guo & Wenyan Pan, 2022. "Research on Voluntary Carbon Information Disclosure Mechanism of Enterprises from the Perspective of Stakeholders—A Case Study on the Automobile Manufacturing Industry," IJERPH, MDPI, vol. 19(24), pages 1-15, December.

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