Factors influencing the level of environmental disclosures in sustainability reports: Case of climate risk disclosure by Brazilian companies

摘要

In addition to sustainability issues, companies are being asked to disclose information on climate change risks in order to inform investors and stakeholders. However, despite the growing number of studies on corporate environmental disclosure, there are few studies on risks and opportunities in relation to climate change. This study investigated the extent and content of climate risks information disclosure provided in the sustainability reports of firms listed on the Brazilian Stock Exchange (BM&FBovespa) and tested whether there were any relationships between the amount of climate risks disclosure and some corporation characteristics. The sample was composed of companies that were simultaneously listed on the stock exchange and disclosed the Global Reporting Initiative sustainability reports from 2009 to 2014. The final sample of the study was 67 companies totaling 402 observations. Preliminary results from the content analysis revealed that, although Brazilian companies tend to disclose information on climate risks, the level of this type of disclosure still remains relatively low. Findings suggest that corporate climate risk disclosures have significant and positive relationships with firm size, financial performance, and country origin. Nevertheless, findings indicate that corporate climate risk disclosures have negative associations with level of indebtedness.