English Abstract
Abstract:
This thesis aims to examine the nature and extent of climate change disclosure (CCD)
of carbon-intensive firms operating in the Gulf Cooperation Council (GCC) region and
identify disclosure's main determinants. The study is based on cross-sectional data of
212 firms for the year 2022. Content analysis is preformed to evaluate the scope of
sampled firms' CCD in annual and sustainability reports based on a disclosure index
that is suitable for the GCC context. The results reveal a concerning low level of carbon
disclosure across the region and limited external assurance over disclosed information.
In order to identify disclosure influencers, a regression model is developed to test the
effect of firm size, age, profitability, leverage, board independence, the existence of
sustainability or environmental committees, the adoption of Global Reporting Initiative
(GRI) standards, and countries' environmental performance index (EPI) scores on
CCD. It is worth noting that the regression results accept the research hypotheses
pertaining to the positive relationship between factors including size, debt levels, as
well as GRI adoption and CCD at the 1% significance level. Hypotheses concerning
the positive impact of both sustainability or environmental committees and EPI scores
are also accepted, yet at the 10% significance level only, whereas firm age, profitability,
and board independence have not been found to be significant determinants of CCD.
The study contributes to the existing body of literature by providing empirical evidence
of CCD determinants in the GCC, a region that has been overlooked by prior studies
within the same field of research. The insight provided by the study regarding the nature
and extent of CCD is expected to improve users' comprehension of the current status
of CCD within the region, thus enabling them to approach and evaluate such disclosure
critically. Furthermore, research findings can be utilized by regulators to form policies
and plans aimed at fostering a culture of greater corporate transparency and
sustainability.
Keywords: Climate change, Climate change disclosure, Carbon disclosure, GHG,
Sustainability reporting
