A new study from the Telfer School of Management finds a correlation between good corporate governance and voluntary climate change disclosures.
© Padraic Ryan
The Desmarais Building, home to the Telfer School of Management at the University of Ottawa.
The study, by the CGA-Canada Accounting and Governance Research Centre (CGA-AGRC) based out of the school, suggests board attributes can influence a company’s decision to reveal climate change risks, and to take action against them.
"An effectively governed firm can be expected to voluntarily disclose climate change risks to increase its transparency to investors and enhance its economic performance," says professor Walid Ben Amar, PhD, CGA, the study's lead author.
The report says the voluntary public disclosure of greenhouse gas emissions can be seen as a first step towards the recognition and reduction of a firm’s carbon footprint.
The Carbon Disclosure Project requests public disclosure of emissions and while companies with high carbon emissions tend to respond less, the report says they do provide more detailed information about how their activities affect climate change.
Fifty-four per cent of the firms in the study are considered to have high carbon emissions.