CARBON ACCOUNTING DISCLOSURE, ESG TRANSPARENCY, AND CORPORATE ENVIRONMENTAL PERFORMANCE
Keywords:
Carbon Accounting Disclosure, ESG Transparency, Corporate Environmental Performance, SustainabilityReporting, Corporate GovernanceAbstract
This study examines the impact of Carbon Accounting Disclosure and ESG Transparency on Corporate Environmental Performance in the context of increasing climate-related risks and stakeholderexpectations for sustainable governance.As sustainability reporting becomes more institutionalized, organizations are expected to integrate transparentenvironmental and ESG disclosure practices into strategic decision-making processes. Using a quantitative researchdesign, data were collected from 300 organizational respondents between 2017 and 2021 through a structured surveyinstrument. Composite construct scores were computed for Carbon Accounting Disclosure, ESG Transparency, andCorporate Environmental Performance based on five-point Likert scale measures. Pearson correlation analysis wasemployed to assess the relationships among the variables, followed by multiple regression analysis to test the direct effectsof disclosure and transparency mechanisms on environmental performance outcomes. The findings reveal that bothCarbon Accounting Disclosure and ESG Transparency exert significant positive effects on Corporate EnvironmentalPerformance, with ESG Transparency emerging as the stronger predictor. The regression model explains approximately59.8% of the variance in environmental performance, indicating substantial explanatory power. These results suggestthat structured carbon accounting systems and comprehensive ESG transparency frameworks functionas substantivegovernance mechanisms that enhance environmental accountability rather than merely symbolic reporting tools. Thestudy contributes to sustainability reporting literature by empirically demonstrating the performance implications ofintegrateddisclosure practices and offers practical insights for policymakers and corporate leaders seeking to strengthenenvironmental performance through enhanced transparency and governance alignment.
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