<scp>CSR</scp> Governance Committee and Carbon Emission Performance: Does Committee Composition Matter?

ABSTRACT This study examines the effect of corporate social responsibility (CSR) committee characteristics, namely the committee size, independence, chairperson independence, and meeting frequency, on firms' carbon emission performance. The authors test the hypotheses through a panel data analysis for a sample of non‐financial firms listed on the Bloomberg World Large and Mid‐Index from 2010 to 2020. Using data from Refinitiv Eikon and Bloomberg databases, the findings show that the CSR committee's presence is positively linked with carbon emission performance, suggesting that these committees play a crucial role in diminishing firms' carbon footprints. Moreover, the results indicate that larger committee size, the independence of the CSR committee chairperson, and increased meeting frequencies are positively associated with carbon emission performance. Our study underlines the importance of CSR committee in elevating firms' awareness and management of their carbon footprint, encouraging their adoption as a strategic measure against the rising concerns over carbon emissions. It highlights that the structure of these committees is necessary for their effectiveness, offering actionable insights for firms and policy considerations for regulators globally.