Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies

Journal of Business Ethics · 2016 · Volume 136 · Issue 2

Abstract

Corporate reporting on climate change is of increasing academic interest but is often considered solely from the firm perspective. This article extends current knowledge by considering how institutional pressures influence the greenhouse gas (GHG) reporting practices of multinational oil and gas companies. The results show that regulation under the EU emissions trading scheme and reporting according to the global reporting initiative (GRI) guidelines leads to better quality and more extensive reporting. Although generally adopting proactive climate change strategies, European companies do not have superior GHG reporting practices. Corporate media visibility does not impact GHG reporting practices which may be a reflection of the obscure portrayal of climate change in the print media or the fact that coverage is generally positive. This article adds to the current literature on GHG reporting practices demonstrating that institutional theory along with stakeholder theory and legitimacy theory can give further insights into explaining the GHG reporting practices of multinational companies.

Keywords

Climate change, Greenhouse gas emissions, Oil and gas industry, Sustainability reporting

Enable JavaScript for citation tools and additional paper interactions.