Institutional pressures on disclosure of carbon control issues by oil and gas companies

Authors

  • Mônica Cavalcanti Sá de Abreu Universidade Federal do Ceará
  • Sâmia Castor Albuquerque Ernest Young Audit Services
  • Marcelle Colares Oliveira Universidade Federal do Ceará

Abstract

This paper evaluates the influence of institutional pressure on climate change project disclosure in oil and gas companies. It was based on a sample of sustainability reports issued by 35 companies included on the 2011 Fortune ranking from the USA, Europe, Latin America and Asia. Empirical results suggest that companies positioned at the top of the Fortune ranking have higher levels of information disclosure on climate change projects. These companies are the most susceptible to normative pressure, contradicting the claim that climate strategy is predominantly associated with the mimetic or coercive pillar. Companies in emerging economies have low levels of disclosure because environmental issues receive less attention than social issues, such as poverty. The study demonstrated that multinationals were subject to low coercive pressures due to the lack of clear regulations and international enforcement mechanisms. The oil and natural gas companies surveyed are exposed to institutional pressure associated with the three types of isomorphism and see disclosure of climate change projects as a way of acquiring legitimacy.

Keywords: climate change, institutional theory, environmental disclosure, oil and gas companies.

Author Biographies

Mônica Cavalcanti Sá de Abreu, Universidade Federal do Ceará

Bolsista de Produtividade 1D do CNPq, Professor Associado II da Universidade Federal do Ceará - Departamento de Administração, Pós-Doutorada no Institute for Manufacturing da University of Cambridge (UK), Doutorado em Engenharia de Produção (UFSC), Mestrado em Tecnologia de Processos Químicos e Bioquímicos (UFRJ) e Graduação em Engenharia Química (UFC)

Sâmia Castor Albuquerque, Ernest Young Audit Services

Auditora Senior da EY, Graduada em Administração pela Universidade Estadual do Ceará (UECE), Mestre em Administração e Controladoria (UFC)

Marcelle Colares Oliveira, Universidade Federal do Ceará

Bolsista de Produtividade 2 do CNPq, Professora Associada do Departamento de Contabilidade, UFC, Doutorado em Contabilidade na FEA/USP

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Published

2016-03-22

Issue

Vol. 13 No. 1 (2016): Jan/Mar

Section

Special Issue

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