Risk Governance and Green Signals: How Risk Management Committees and <scp>GRI</scp> Compliance Transform Emissions–Value Relationships in European Oil and Gas Companies

ABSTRACT This study examines how risk management committees (RMCs) and global reporting initiative (GRI) compliance shape the relationship between firms' greenhouse gas emissions and market value, potentially transforming emissions from perceived liabilities into strategic value signals. Analyzing 1203 firm‐year observations from 205 European oil and gas companies (2018–2023) through moderated‐mediation frameworks (System GMM, Hayes' PROCESS Model 59), we reveal that firms with RMCs mitigate 37% of emissions‐related value destruction, while GRI compliance mediates 12% of the emissions–value relationship—but only when combined with robust governance oversight. Scope‐specific analysis demonstrates hierarchical investor attention: Scope 1 emissions command 32% stronger market penalties than Scope 3, reflecting regulatory controllability premiums under EU ETS. Our findings demonstrate that governance‐reporting synergies intensify post‐EU Taxonomy implementation, offering critical implications for European energy transition strategies, corporate decarbonization prioritization, and regulatory architecture design in carbon‐constrained economies.