Overview of research on factors affecting greenhouse gas emissions disclosure

Abstract

Disclosure and transparency of greenhouse gas (GHG) emissions information is an inevitable trend to ensure sustainable development of governments, and businesses. Currently, international organizations, governments worldwide, businesses across various countries, and other stakeholders are taking concrete, decisive and responsible actions to fulfill international commitments on GHG emissions in accordance with COP 28 and 29. The Government of Vietnam is currently drafting amendments and supplements to Decree No. 06/2022/ND-CP, which regulates the mitigation of GHG emissions and the protection of the ozone layer aim to keep up with domestic and international changes, as well as consistent with the implementation of international agreements on climate change. This study aims to review and systematize prior research works related to factors affecting the disclosure of greenhouse gas in emerging markets such as Vietnam and other developed markets in the world. The findings provide authors and other researchers with an initial foundation to conduct in-depth investigations into other related aspects of this field, thereby strengthening academic knowledge, generating practical evidence for business and helping policy improvement. The study also contributes to enriching the theoretical foundation and developing research models on the factors affecting GHG emissions disclosure of enterprises in Vietnam. Research purpose: To review and systematize prior research works related to factors affecting the disclosure of greenhouse gas in emerging markets such as Vietnam and other developed markets in the world. Research motivation: Explore factors affecting the disclosure of greenhouse gas to provide authors and other researchers with an initial foundation to conduct in-depth investigations into other related aspects of this field, thereby strengthening academic knowledge, generating practical evidence for business and helping policy improvement. Research design, approach, and method: To systematize prior research works related to factors affecting the disclosure of greenhouse gas, authors use qualitative research methods: collecting, validating, analysing and comparing domestic and international studies in order to categorize the determinants of disclosure. Main findings: International studies are productive and diverse as well as wide range of dataset measuring emissions at all of layers from national, enterprise, to product while in Vietnam, research has only begun in some specific industries with limited scope. It also highlights the dominant role of institutional pressures, shareholder expectations, firm’s size, industry characteristics, and governance factors while in Vietnam, preliminary studies also identify external factors (institutional pressures, economic, social) and internal factors (corporate governance, financial status), however in overall, this field is still underexplored. Most of global evidence confirms that transparent GHG disclosure brings long term benefits to businesses, particularly as investors and funds increasingly prioritize green and sustainable development. Practical/managerial implications: To support the implementation of Vietnam’s commitment to achieve carbon neutrality goal by 2050. To support policymakers in developing policies to support business compliance and attract green capital for development. To enhance the awareness and competitiveness of Vietnamese enterprises in international market. To enhance the public awareness in environmental protection through corporate GHG disclosure.