Do Audit Committee Characteristics Influence Climate‐Related Disclosure? Evidence From Italian Listed Firms

ABSTRACT Research concerning the determinants of corporate climate disclosure has primarily focused on the board of directors, whereas evidence regarding the audit committee (AC), whose oversight directly influences the reporting process, remains limited and inconclusive. Drawing on agency and stakeholder theories, this study examines whether AC characteristics explain the extent of climate‐related disclosure. We hand‐code a 13‐item Climate Disclosure Index aligned with the Task Force on Climate‐related Financial Disclosures from the 2024 non‐financial reports of 211 Italian‐listed firms and estimate hierarchical regressions. AC gender diversity and meeting frequency are positively and significantly associated with disclosure extent, whereas AC size and independence are not; firms in environmentally sensitive industries (ESI) exhibit a greater disclosure extent than non‐ESI firms. Results hold across several robustness tests, including Tobit regression, regional controls, and entropy balancing. These findings provide implications for managers and policymakers, highlighting the need to promote AC activism and gender diversity as essential internal mechanisms to enhance corporate accountability in response to the climate crisis.