Climate Risk Governance, Green Transformation Initiatives, and Carbon Mitigation Performance

Document Type

Article

Publication Date

2-2026

Department 1

Management

Abstract

This study investigates the impact of climate risk governance and green transformation initiatives on carbon mitigation performance. Using a sample of 276 compliant, carbon-sensitive, non-financial United Kingdom (UK) listed firms from 2011 to 2020, the authors found that climate risk governance mechanisms and green transformation initiatives improve carbon performance by minimizing actual carbon emissions. Their results also reveal that the joint effect of climate risk governance and green transformation initiatives, an indication of the quality of sustainable transformation aimed at addressing climate change, helps achieve sustained carbon mitigation performance. The results remain consistent after a battery of robustness tests and identification strategies. This study has important implications for management, policymakers, and other stakeholders concerning governance structure reforms and green transformation.

DOI

10.1016/j.intaccaudtax.2026.100757

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