Sustainable corporate governance and corporate carbon outputs: Status quo of empirical research and further improvements

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Purpose: Due to various climate regulations from an international perspective, this study focuses on the effect of sustainable corporate governance on corporate carbon outputs.
Design/methodology/approach: Relying on legitimacy theory, this structured literature review includes 100 quantitative peer-reviewed empirical (archival) studies on the effect of board gender diversity (BGD), sustainability board committees (SBC), sustainability-related executive compensation (SREC), and sustainable (institutional) investors on carbon performance, reporting, and assurance.
Findings: As the most prominent sustainable corporate governance variable, BGD is positively connected to carbon reporting and performance. This relates to the existence and quality of carbon reports as well as absolute and relative proxies of carbon performance. The other dimensions of sustainable corporate governance are included, to a low extent, in prior research.
Originality: To the best of our knowledge, this is the first literature review on sustainable corporate governance and corporate carbon outputs. Previous studies have mainly relied on overall sustainable corporate governance dimensions, without a focus on climate boards and investors. Based on legitimacy theory, sustainable corporate governance can be implemented for either symbolic or substantive reasons, leading to heterogeneous impacts on carbon outputs. Due to the dominant use of dummy variables on SBC and SREC, many studies included in the literature review do not differentiate between these management strategies. Future research should address the impact of sustainable corporate governance on carbon outputs in more detail. Analyses of the critical mass of female directors should be transferred to climate board experts and climate-based targets in executive compensation.
OriginalspracheEnglisch
ZeitschriftJournal of Financial Reporting and Accounting
ISSN1985-2517
PublikationsstatusAngenommen/Im Druck - 2025

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