CARBON ACCOUNTING DISCLOSURE, ESG TRANSPARENCY, AND CORPORATE ENVIRONMENTAL PERFORMANCE
Keywords:
Carbon Accounting Disclosure, ESG Transparency, Corporate Environmental Performance, Sustainability Reporting, 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 stakeholder expectations for sustainable governance. As sustainability reporting becomes more institutionalized, organizations are expected to integrate transparent environmental and ESG disclosure practices into strategic decision-making processes. Using a quantitative research design, data were collected from 300 organizational respondents between 2017 and 2021 through a structured survey instrument. Composite construct scores were computed for Carbon Accounting Disclosure, ESG Transparency, and Corporate Environmental Performance based on five-point Likert scale measures. Pearson correlation analysis was employed to assess the relationships among the variables, followed by multiple regression analysis to test the direct effects of disclosure and transparency mechanisms on environmental performance outcomes. The findings reveal that both Carbon Accounting Disclosure and ESG Transparency exert significant positive effects on Corporate Environmental Performance, with ESG Transparency emerging as the stronger predictor. The regression model explains approximately 59.8% of the variance in environmental performance, indicating substantial explanatory power. These results suggest that structured carbon accounting systems and comprehensive ESG transparency frameworks function as substantive governance mechanisms that enhance environmental accountability rather than merely symbolic reporting tools. The study contributes to sustainability reporting literature by empirically demonstrating the performance implications of integrated disclosure practices and offers practical insights for policymakers and corporate leaders seeking to strengthen environmental performance through enhanced transparency and governance alignment.
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