Carbon Disclosure and Organization Performance: A Literature Review

Abstract

As a response to the threat of climate change, a growing number of businesses are voluntarily reporting carbon statistics. This article provides a comprehensive understanding of carbon disclosure, organization performance (OP), and cost of capital. This study aims to map the landscape of existing carbon disclosure and firm performance research completed over the past 10 years (2013-2022) utilizing bibliometric analysis. Sparked by the growing political, social, academic, and practical significance of controlling and reporting on climate-related concerns worldwide, this study analyzes the production and acquisition of information about significant regions and territories, institutions, publications, and channels for carbon disclosure and firm performance research using data from 878 publications retrieved from the Scopus database. To identify themes and subthemes in the research on carbon disclosure and firm performance, network analysis was utilized to reveal connections between the topics represented by keywords. Further, critical gaps have been highlighted in the literature, such as: the lack of carbon disclosure research across cross-sector settings, the lack of sectorial comparisons on the carbon disclosure practices, and the dearth of analyses of both pre-carbon disclosure and after-carbon disclosure practices and their impact on various financial and nonfinancial issues (for example, cost of capital and firm performance, sustainability, and climate change). Finally, this study makes specific recommendations for future carbon disclosure and firm performance research.