Do board sustainable development committees matter to carbon emission reporting quality?

Abstract

This study investigates the association between the board sustainable development committees (BSDCs) and the quality of carbon emission reporting. Using ISO 14064-1 certification as a measure of carbon-emission reporting quality, we corroborate that firms with BSDCs are more likely to obtain ISO 14064-1 certification. This indicates that firms voluntarily establishing these committees can improve the reliability of their carbon emission reports. The diversity within BSDCs - defined by structural diversity (such as board size, board independence, and the frequency of board meetings) and demographic diversity (including financial/accounting expertise and gender) - is positively associated with the likelihood of achieving ISO 14064-1 certification. Moreover, the presence and diversity of BSDCs are linked to lower carbon emissions. Collectively, this research provides new insights into how BSDCs can enhance the reliability of carbon emission reporting.