THE CREDIBILITY GAP IN CLIMATE REPORTING: GOVERNANCE AS A PREDICTOR OF EMISSIONS DATA ACCURACY

Abstract

The increasing adoption of climate-related disclosures has intensified concerns regarding the credibility and accuracy of reported greenhouse gas (GHG) emissions. This study empirically examines the extent to which corporate governance quality predicts emissions data accuracy, thereby addressing the credibility gap in climate reporting. Using a panel dataset of 120 publicly listed firms across energy, manufacturing, and financial sectors from 2019 to 2024, the study employs fixed-effects regression analysis. Emissions accuracy is proxied by the deviation between self-reported emissions and benchmark estimates derived from industry-adjusted intensity models. The results reveal that governance quality significantly improves emissions data accuracy, with board independence and sustainability governance structures exerting strong negative effects on reporting discrepancies. The findings remain robust across alternative model specifications. The study contributes to ESG literature by shifting emphasis from disclosure quantity to disclosure credibility and provides policy-relevant insights for strengthening governance frameworks in climate reporting.