Determinants of carbon emission disclosure among listed firms in the East Africa Community partner states

Purpose The worldwide concern about climate change underscores the significance of carbon information for decision-making. Thus, the purpose of this study is to assess the effect of company-specific factors and board dimensions on carbon emission disclosure (CED) among listed firms in the East Africa Community. Design/methodology/approach This study used a sample of 73 firms for the period between 2016 and 2022 following the issuance of GRI 305 in 2016 that requires companies to disclose Scopes 1 and 3 biogenic CO2 emissions separately from the total gross emissions and includes compilation requirements to specify how a company is to disclose this information. Data on carbon emission was hand-picked from annual reports. This study applied the system generalized method of moments to test the hypotheses. Findings This study found that board size, board independence, board gender diversity, firm size, firm age and profitability had a positive effect on CED. Conversely, leverage had a negative effect on CED. Practical implications The findings of this study provide valuable insights for policymakers, environmental groups, investors and accounting standards setters. They contribute to achieving the objective of reducing carbon emissions by corporate entities and assessing the carbon footprint of firms. Additionally, they help evaluate the level to which corporate entities fulfill their obligations regarding the environment. Originality/value To the best of the author’s knowledge, this study is the first to investigate the firm-specific factors and board attributes that influence the CED by corporate entities in the East Africa Community. As a result, this study provides new insights into the existing body of research on the disclosure practices of listed corporations about carbon emissions.