Internal Governance and the Likelihood of Carbon Footprint Disclosure in Non-Financial Firms Listed on the Nigeria Exchange Group

Abstract

This paper investigates the influence of internal governance on the carbon footprint disclosures by non-financial companies listed on the Nigeria Exchange Group from 2014 to 2023. The reputation of boardroom members was proxied alongside board independence, financial expertise, and the frequency of audit committee meetings. The reputation of board members was considered a factor in the study because of the effect sustainability disclosures may have on the reputation of a firm. A longitudinal design was adopted, and logit regression was the estimation method in the study. The findings revealed a significant relationship between board independence, financial expertise of board members, audit committee meetings, board members reputations, and the likelihood of carbon footprint disclosures. The study recommended that the provision on greenhouse gas emissions in the existing Climate Change Act of 2021 should be amended such that Nigerian companies are mandated to disclose the extent of their greenhouse gas emissions.

Keywords:       sustainability reporting, board reputation, board independence, governance, financial expertise

JEL Codes:     M41