Solicited Disclosure and the Carbon Disclosure Project: An Australian Study

• In Event: Accounting Education and Case Studies

Abstract

Climate change issues have increasingly attracted government, business and professional attention in recent years. More specifically, there is mounting evidence that indicates human induced carbon emissions are a major cause of climate change. This paper investigates the factors that influence a firm’s decision to participate in and disclose carbon emissions information via the Carbon Disclosure Project (CDP). The objective of the CDP is to ensure that investors are better informed about the risks and opportunities facing the largest quoted companies worldwide due to climate change (CDP 2007). We find that firm size, equity offering and regulation regimes are significant determinants of corporate responses to the CDP. Companies representing the Utilities, Energy, and Industrials sectors are more likely to respond to the CDP questionnaire. Findings from this study may assist the accounting profession and regulators in shaping its future directions for carbon accounting and the assurance of carbon emissions disclosures.

Authors

• Shan Zhang, Monash University

• Patricia McNicholas, Monash University

• Jacqueline Louise Birt, The University of Queensland