Published in Ecological Economics
Climate transparency through firms’ disclosures is often considered a prerequisite for the redirection of investments toward low-carbon economy. In order to provide effective incentives to improve this transparency, it is therefore crucial to identify its drivers.
In this paper, we investigate the determinants of two stages of climate transparency: i) the likelihood of responding to the CDP questionnaire; and ii) the extent to which companies comply with the TCFD recommendations.
Using a global sample of 571 firms over the period 2020–2021, we estimate a Two-Part Fractional Response Model. First, the results confirm the relevance of considering two stages of climate transparency as the drivers that explain the first stage differ from those explaining the second. We find evidence that variables related to environmental/climate performance and commitment are good predictors of firms’ transparency regarding climate risks and opportunities.
Our results show that climate transparency is strongly influenced by governance mechanism variables (apart from gender diversity). We also highlight that regulatory factors only impact the second stage of climate transparency.
Recent recovery plans, associated with the COVID‐19 pandemic and the energy transition, increased the funding available to finance innovative low‐carbon projects and called for an economic evaluation of their allocation. This paper analyzes the potential benefit of using repayable advance: a lump‐sum payment to finance the project that is paid back in case of...
The Chairs Armand Peugeot, Energy and Prosperity, and Climate Economics are organizing, on December 6th an 7th, 2023, the 10th edition of the annual international Conference on Mobility Challenges.