Analysis of climate-related disclosures in New Zealand before and after the mandatory implementation of climate standards
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Authors
Abeysekara, Dhanushka
Hewagama, Gayani
Dassanayake, Wajira
Hewagama, Gayani
Dassanayake, Wajira
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Date
2025-10-29
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Conference Contribution - Oral Presentation
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Keyword
New Zealand
listed companies
carbon allowance accounting
carbon footprint
greenhouse gas (GHG) emissions
sustainability accounting
listed companies
carbon allowance accounting
carbon footprint
greenhouse gas (GHG) emissions
sustainability accounting
ANZSRC Field of Research Code (2020)
Citation
Abeysekara, D., Hewagama, G., & Dassanayake, W. (2025, August, 29). Analysis of climate-related disclosures in New Zealand before and after the mandatory implementation of climate standards [Paper presentation]. 15th Sustainability Accounting Research Network (SARN) Symposium, Auckland, New Zealand
https://hdl.handle.net/10652/7125
Abstract
PURPOSE
This study has two primary objectives: (1) to determine whether the level of climate-related disclosures differs significantly between the pre- and post-implementation periods of New Zealand's mandatory climate reporting standards, and (2) to examine the relationship between firms’ carbon emissions and their climate disclosure levels.
METHODOLGY
Guided by Legitimacy Theory, this study employs panel regression with Random Effects Models to analyse data from a sample of 30 New Zealand-listed companies over the period 2020–2024. Climate-related disclosure data are sourced from LSEG Refinitiv Workspace and aligned with the New Zealand Climate Reporting Standards (NZ CS 1).
FINDINGS
The results show that the climate disclosures improved significantly during the post-implementation period. This finding aligns with Legitimacy Theory, which suggests listed companies respond to institutional pressures to maintain legitimacy. While Scope 1 GHG emissions show no statistically significant association with the climate disclosures, Scope 2 GHG emissions show a negative association with the disclosure quality. This finding indicates that the companies with higher indirect emissions are more likely to provide lower climate-related disclosures. Female representation and firm size are positively and significantly associated with the disclosure quality, while no significant relationship is found with Return on Assets (ROA).
ORIGINALITY
This study provides timely empirical evidence on the impact of New Zealand's pioneering shift to mandatory climate-related reporting on the level of disclosures. The study makes a contribution to the literature by examining the differential relationships between Scope 1 vs. Scope 2 emissions and disclosure quality in this novel regulatory setting, as well as testing the importance of board diversity, firm size, and profitability as control variables.
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