Does resource environmental audit help to improve carbon disclosure quality?

Purpose The purpose of this study is to develop an innovative analytical framework that examines the impact of environmental auditing on carbon information disclosure from a three-dimensional perspective encompassing resource flow, value flow and information flow. Using a data sample of Chinese listed chemical companies, the study investigates whether resource and environmental auditing contributes to improving the carbon disclosure quality of enterprises within this specific industry in China. Design/methodology/approach The study examines the carbon disclosure data of Chinese A-share chemical enterprises from 2013 to 2022 by using a series of empirical strategies, including parallel trend testing, multiperiod difference-in-differences, placebo testing and variable substitution methods. Building on these analyses, the research develops a three-dimensional analytical framework to assess the impact of resource and environmental auditing on enterprises’ carbon disclosure performance. The empirical evidence is then used to evaluate whether such auditing enhances the quality of carbon information disclosure in the chemical industry. Findings The study reveals that resource and environmental audits significantly enhance the quality of corporate carbon disclosure, with a more pronounced effect on enterprises that adopt such audits. Specifically: (1) Resource and environmental audits directly improve the quality of carbon information disclosure by fostering greater transparency and accountability. (2) These audits encourage local governments to strengthen the enforcement of environmental policies, thereby indirectly improving disclosure quality. On one hand, this is reflected in stricter environmental penalties and higher environmental tax burdens, which reinforce effective regulatory mechanisms. On the other hand, it is manifested in increased environmental subsidies, which ensure the efficient implementation of supportive policies. (3) Strengthening corporate carbon disclosure systems through resource and environmental audits not only improves firms’ environmental performance but also enhances their economic and social outcomes, underscoring the synergistic relationship between environmental sustainability and economic development. (4) Effective management of resource and environmental audit results can help management improve the green innovation capability of enterprise production processes, reduce waste emissions, lower production costs, enhance resource recycling efficiency, provide audit experience evidence for the green transformation of enterprises and promote the improvement of performance of enterprise environmental management. Originality/value This study offers a novel perspective on the influence of resource and environmental auditing on the quality of corporate carbon information disclosure. By constructing an analytical framework that integrates the three dimensions of resource flow, value flow and information flow, it advances understanding of how environmental auditing shapes disclosure practices. The findings provide theoretical support and a practical model for promoting high-quality green economic development and strengthening environmental governance in the chemical industry, while also contributing to the standardized and coordinated advancement of environmental, economic and social benefits in chemical enterprises.