The Impact of the Paris Climate Change Agreement and Other Factors on Climate Change Disclosure in South Africa ^∗

Abstract

Purpose

This study investigates the impact of the Paris Agreement (and other factors) on carbon information disclosures to the Carbon Disclosure Project (CDP).

Design/Methodology/Approach

A sample of South African listed companies was selected and data analysed from 2013 to 2017. A random effect panel data model using SPSS was used to determine whether the Paris Agreement had an effect on carbon information disclosure.

Findings

The results indicate that (1) the Paris Agreement, as an example of an intergovernmental coordination initiative, is significant in creating awareness and increasing the carbon disclosures to the CDP. Furthermore, (2) in terms of the other factors examined, providing incentives for managing climate change and assessing climate risks further into the future improves disclosure quality, while no relationship was found between the CDP score and the approval by key management personnel.

Originality

This research examines CDP disclosures for an emerging market before and after the signing of the Paris Agreement.

Practical Implications

This research shows the importance of supportive government policy. Furthermore, a commitment to climate change disclosure is manageable and achievable and needs to be implemented at the management level.

Citation

Mongie, C., Willows, G. and Herbert, S. (2023), "The Impact of the Paris Climate Change Agreement and Other Factors on Climate Change Disclosure in South Africa ^∗ ", Tauringana, V. and Moses, O. (Ed.) Green House Gas Emissions Reporting and Management in Global Top Emitting Countries and Companies (Advances in Environmental Accounting & Management, Vol. 11), Emerald Publishing Limited, Leeds, pp. 107-125. https://doi.org/10.1108/S1479-359820230000011006