Mandatory CO2 reporting: companies reduce greenhouse gas emissions

Climate change is humanity's greatest chellange these days and increased efforts are needed to reduce greenhouse gas emissions to the extent necessary. Downar, Ernstberger, Reichelstein, Schwenen and Zaklan (2021) show that corporate CO2 reporting can make an important contribution to this. According to the study, companies that are obliged to report their greenhouse gas emissions in a standardized manner significantly reduce their emissions.

The reduction is not due to a decrease in production but an actual improvement in energy efficiency. Furthermore, the study did not find any impairment in the companies profitability. The companies have made their business model more sustainable and have been able to reduce emissions through cost-effective investments. Read more

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