Purpose

This study aims to examine the impact of Audit Committee (AC) characteristics on carbon disclosures and performance among companies listed in the STOXX Europe 600 index.

Design/methodology/approach

The sample consists of companies listed in the STOXX Europe 600 index over a 11-year period (2012–2022). The study uses panel data regression methods and uses the two-step system generalized method of moments to control for endogeneity.

Findings

The results indicate that AC size, independence and financial expertise positively influence carbon disclosure, highlighting the significance of these characteristics in promoting transparency and accountability in reporting carbon emissions. Additionally, these attributes are significantly associated with improved carbon performance, suggesting their potential role in advancing environmental sustainability.

Practical implications

The study provides practical insights for policymakers and regulatory bodies aiming to enhance carbon-related practices through improved corporate governance (CG) structures. By emphasizing the importance of specific AC characteristics, the findings suggest pathways for enhancing the quality of carbon disclosures and performance.

Originality/value

Despite extensive attention on CG in promoting sustainability, the specific influence of AC characteristics on carbon disclosures and performance remains underexplored. This study addresses this significant literature gap and, to the best of the authors’ knowledge, is the first to link AC characteristics with both carbon disclosure and performance. It enriches the current body of knowledge in agency theory and provides critical insights for developing CG and regulatory policies that enhance the quality of carbon disclosures.

Title

Journal of Financial Reporting and Accounting

Publisher

Emerlad

Publisher Country

United Kingdom

Indexing

Thomson Reuters

Impact Factor

3.5

Publication Type

Both (Printed and Online)

Volume

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Year

2025

Pages

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