Publication Type
Working Paper
Version
publishedVersion
Publication Date
12-2024
Abstract
A firm's decision to initiate Scope 3 emissions disclosure not only reflects their sustainability efforts but also signals their commitment to decarbonizing its value chain, fostering collaboration among suppliers in promoting greener supply chains. Using a generalized difference-in-differences research design, we find that suppliers reduced greenhouse gas emissions following their customers’ initiation of Scope 3 emissions disclosures. This reduction in emissions is more pronounced when the supplier poses greater climate risk and when the customer has a greater need to restore public trust for its climate-related behavior. We also find that this effect varies with the strength of the customer-supplier relationship and customer substitutability. Additional analyses suggest that the effect is not solely driven by direct customer monitoring and is robust to excluding customer-supplier pairs likely subject to common shocks. Overall, our results are consistent with Scope 3 emissions disclosures playing a role in promoting more sustainable supply chains.
Keywords
Disclosure, Emissions, Supply Chains, Sustainability
Discipline
Accounting | Operations and Supply Chain Management
Research Areas
Corporate Reporting and Disclosure
Areas of Excellence
Sustainability
First Page
1
Last Page
49
Identifier
10.2139/ssrn.5064034
Publisher
SSRN
Citation
CHO, Young Jun; KIM, Jungbae; YANG, Holly I.; and YANG, Mengjie.
Corporate disclosures for green supply chains: Evidence from Scope 3 emissions disclosure. (2024). 1-49.
Available at: https://ink.library.smu.edu.sg/soa_research/2067
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.5064034
