Carbon Disclosure and Financial Performance: UK Environmental Policy

Khaled Alsaifi, Marwa Elnahass, Aly Salama

Research output: Contribution to journalArticlepeer-review

105 Citations (Scopus)


The outcome of carbon disclosure, the importance of which has grown remarkably in recent years to become a strategic decision-making issue for organisations in today's competitive environment, is a subject of lively debate but remains under-researched in the environmental accounting literature. This study is motivated by this research gap and the growing interest in assessing the financial consequences of corporate involvement in climate change beyond regulatory compliance, as evidenced by firms' voluntary participation in the Carbon Disclosure Project. Using the resource-based view of the firm as a theoretical framework and linking it to carbon disclosure through Carbon Disclosure Project, we conceptualise and empirically investigate the impact of adopting proactive carbon management policies and communicating them to stakeholders, focusing on the financial performance of the top FTSE350 companies between 2007 and 2015. By developing a comprehensive financial performance index and controlling for several firm characteristics, we find strong evidence that voluntary carbon disclosure is positively associated with firm financial performance.The findings in this paper provide new insights and policy implications for managers, financial stakeholders, and regulators.
Original languageEnglish
Pages (from-to)711-726
Number of pages16
JournalBusiness Strategy and the Environment
Issue number2
Early online date17 Dec 2019
Publication statusPublished - 1 Feb 2020
Externally publishedYes


Dive into the research topics of 'Carbon Disclosure and Financial Performance: UK Environmental Policy'. Together they form a unique fingerprint.

Cite this