Mandatory Carbon Disclosure and its potential impact on firm-level emissions and financial performance

Abstract

We study the impact of mandatory carbon disclosure regulations on the carbon emissions and firm value of Nordic firms. We focus on publicly listed companies in Norway, Sweden, Denmark, and Finland. We find no differential effect in the carbon emission levels and firm value of firms that only disclosed after the regulation compared to firms that voluntarily disclosed before the regulation. However, we observe a slight increase in emission intensity of firms that only disclosed after the regulation. We conclude that the mandatory disclosure rules have no impact on the firm value and total carbon emission levels of Nordic firms.