Purpose

This study aims to investigate how corporate governance (CG) mechanisms, particularly board characteristics, influence carbon emissions disclosure (CED) and examines the moderating role of the sustainability committee (SC) in a European context shaped by intensifying regulatory and stakeholder demands for transparent climate-related reporting.

Design/methodology/approach

Using a balanced panel of 513 STOXX Europe 600 non-financial firms across 17 countries (2015–2023), the study uses panel regression with fixed effects. Endogeneity and heterogeneity are addressed through dynamic system generalized method of moment, lagged governance variables, regulatory controls and industry sensitivity analyses.

Findings

Board independence, gender diversity, meeting frequency and size are positively associated with CED, while chief executive officer (CEO) duality is negatively related. SCs are positively associated with higher CED and moderate board effects: they strengthen the impact of gender diversity, board activity and size, attenuate CEO duality and substitute for the monitoring role of independence. Results are robust across alternative specifications, regulatory settings and industry classifications.

Practical implications

SCs should be viewed as substantive governance mechanisms rather than symbolic structures. Firms can enhance the credibility and quality of CED by embedding sustainability oversight within board governance, particularly alongside diverse and active boards. For policymakers, regulatory initiatives and internal governance operate as complementary drivers of disclosure quality.

Originality/value

This study contributes to the literature by demonstrating that CED is shaped by configurations of governance mechanisms rather than isolated board attributes, and by highlighting the dual substitutive and complementary role of SCs. It advances theoretical understanding of governance–disclosure dynamics in a highly regulated European setting.

Title

Journal of Financial Reporting and Accounting

Publisher

Emerald Publishing Limited

Publisher Country

United Kingdom

Indexing

Thomson Reuters

Impact Factor

4.2

Publication Type

Both (Printed and Online)

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Year

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Pages

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