Effect of Carbon Emission Disclosures on Sustainability of Oil and Gas Firms in Nigeria

Abstract

The study examines the effect of Carbon Emission Disclosures on Sustainability of Oil and Gas Firms in Nigeria. The study is vital as it portrays the extent to which Carbon Emission Disclosures influence firms’ Sustainability in Nigeria. In order to determine the relationship between Carbon Emission Disclosures and Firms Sustainability, some key proxy variables were used in the study, namely; Leverage and Firms Size as a measurement for sustainability while Carbon Emission Disclosures was measured using the GRI G4 Disclosure Index. Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using OLS Regression Model. The research design used is Ex Post Facto design and data for the study were obtained from the NSE Factbook, Annual Reports & Accounts and Sustainability Reports of oil and gas firms in Nigeria spanning from 2015-2020. The findings of the study generally indicate that Carbon Emission Disclosures have significant and positive effect on Firms Sustainability in Nigeria at 1% level of significance. Based on the findings of the study, it was recommended that corporate organizations should be social responsible and environmental friendly since environmental friendly and social responsible firms are more sustainable. Also sustainability of a company’s current life is largely determined by the company’s ability to manage social and environmental performance.

Keywords: Carbon Emission Disclosure, Leverage, Firms Size, Sustainability

DOI: 10.7176/JESD/12-20-02

Publication date:October 31^st 2021