There is increasing evidence that anthropogenic carbon dioxide emissions are the major cause for global warming. A changing external environment and societal pressure is driving companies to respond to climate change and to limit further contribution where possible. Despite carbon emissions still being largely unregulated and carbon disclosure not being mandatory, many companies in South Africa have voluntarily decided to reduce emissions and make disclosures to the Carbon Disclosure Project (CDP). Institutional, socio-political and economic voluntary disclosure theories all indicate that there is a pressure for companies to monitor their climate mitigation, evaluate the costs of disclosing and manage stakeholders’ pressures by producing voluntary climate change disclosure. The CDP scores the disclosure made by each company as a measure of the company’s progress towards environmental stewardship. The highest CDP score indicates that a company has leadership in its efforts to environmental stewardship and so addressed stakeholders’ concerns. This study aims to determine which factors, either company specific or individual company responses within the CDP questionnaire, influence a high CDP climate change score for South African companies. The top 100 South African companies were selected using a full Johannesburg Stock Exchange (JSE) listing as at 31 March 2017 and the climate change programme score and individual company responses to the climate change questionnaire were obtained from the CDP for the five-year period from 2013 to 2017. A random effect model was used to examine the determinants of voluntary disclosure of carbon information. The results indicate that while CDP scores have improved post the signing of the Paris Agreement in December 2015, providing incentives for managing climate change has also led to improvements in the CDP score which results in improved climate change disclosure. Furthermore, the longer the company assesses climate change risks and opportunities into the future, the better its CDP score. This research contributes a more thorough understanding of disclosure theories, as established from these results. In terms of institutional theories, institutional investors should call for incentives to motivate for climate change management because companies might then be more likely to receive a better CDP score. In terms of socio-political theories, this study’s findings indicate that managers should be made aware that the further into the future they consider climate change risk management the better because this practice will result in the company obtaining an improved CDP score, while simultaneously managing stakeholders’ perceptions of the company. Additionally, this study contributes by making recommendations for companies and policy makers.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uct/oai:localhost:11427/30897 |
| Date | 03 February 2020 |
| Creators | Mongie, Caitlin Claire |
| Contributors | Willows, Gizelle |
| Publisher | Faculty of Commerce, College of Accounting |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Masters Thesis, Masters, MCom |
| Format | application/pdf |
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