Does mandatory greenhouse gas emissions reporting program deter corporate greenwashing?

Luu, Nguyen H., Le, Chau, Luu, Hiep N. and Nguyen, Dung T. K. (2025) Does mandatory greenhouse gas emissions reporting program deter corporate greenwashing? Journal of Environmental Management, 373. ISSN 0301-4797

Microsoft Word (rba13-Le_etal_Does_mandatory_gr) - Published Version Available under License Creative Commons Attribution. Download (379kB)

Abstract

This study examines the impact of the mandatory greenhouse gas emissions reporting program (GHGRP) on corporate greenwashing behaviour. Utilising the GHGRP in the United States as a quasi-natural experiment, we perform a difference-in-difference analysis to a panel dataset of 2731 publicly listed US firms from 2007 to 2022. The data consist of annual observations of firm-level variables, including ESG performance and disclosure metrics, financial characteristics, and environmental innovation indicators. Our results reveal a notable reduction in greenwashing behaviour following the adoption of the GHGRP, suggesting that increased transparency and accountability discourage deceptive disclosure practices. A decomposition analysis shows that the GHGRP motivates firms to improve actual ESG performance while curbing inflated ESG claims. Larger and more profitable firms exhibit a more significant decrease in greenwashing, indicating that those under greater public scrutiny respond more strongly to regulatory oversight. Additionally, firms with higher levels of environmental innovation demonstrate a greater reduction in greenwashing post-GHGRP adoption, reflecting an alignment between sustainability commitments and corporate culture. This study offers valuable insights for firm managers, investors, and policymakers on leveraging the GHGRP framework to promote transparency in corporate reporting practices.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Depositing User:	LivePure Connector
Date Deposited:	22 Jan 2026 17:30
Last Modified:	22 Jan 2026 17:30
URI:	https://ueaeprints.uea.ac.uk/id/eprint/101685
DOI:	10.1016/j.jenvman.2024.123740

Downloads

Actions (login required)

View Item