Why do companies not disclose climate change adaptation strategies?

Abstract

For 20 years the private sector has discussed climate change. While information about greenhouse gas (GHG) emissions and reduction targets has become something of a feature in corporate reporting, the majority of businesses do not report on the current and future predicted effects of climate change on their organisation and their proposals for adapting to climate change. This dearth of information about a company’s climate resilience and preparedness is a concern given shareholders, investors, policymakers, and other key stakeholders use corporate reports to inform decision-making. Beyond assumptions, little empirical insights exist on why companies do not disclose on climate change. Utilising 60 interviews with stakeholders involved in climate change reporting, this paper explores why companies do not report corporate climate change adaptation strategies. The paper uncovers various social and organisational factors that raise new insights about the role of the institutional environment in suppressing the spread and uptake of this organisational practice. Insights highlight policy, practice and research opportunities to change organisational behaviour.