Restricted accessResearch articleFirst published online 2026
Do Task Force on Climate-related Financial Disclosures Adoption and Sustainable Development Goals Integration Moderate the Climate Change Financial Disclosure and Firm Performance Relationship? Evidence from Top-emitting Nations
This study examines the relationship between climate change financial disclosure (CCFD) and firm performance (FP), and the moderating role of firms’ adoption of the Task Force on Climate-related Financial Disclosures (TCFD) framework and Sustainable Development Goals (SDGs), focusing on top-emitting countries—China, the USA, India and Japan. The study analyzes a sample of 200 non-financial firms from these countries over the period 2019–2023. CCFD is measured using a manual content analysis technique, with a four-point scale ranging from 0 to 3 based on sustainability report disclosures aligned with the TCFD framework. Fixed effects (FE), random effects (RE) and instrumental variable (IV) two-stage least squares (2SLS) models are employed to ensure robustness. The study reveals a significant positive impact of CCFD on FP, with corporate governance (CG) efficiency enhancing this relationship. Firms adopting the TCFD framework and integrating SDGs into their corporate strategies show improved performance, supporting the legitimacy and stakeholder theories. The findings suggest that firms in top-emitting countries should adopt TCFD, SDGs and stronger CG mechanisms to improve climate-related disclosures and build stakeholder trust. Policymakers should focus on implementing harmonized regulations to enhance transparency, manage climate risks effectively and reduce information asymmetry. This study also emphasizes the importance of embedding sustainability into corporate practices, highlighting how CCFD can align business objectives with societal well-being, thereby enhancing corporate accountability and contributing to social benefits. This is the first study to explore the relationship between CCFD and FP in top-emitting countries, examining the moderating effects of TCFD and SDGs adoption and incorporating CG as a novel variable.
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