There is “robust evidence” that US companies with a high reliance on government contracts disclose more climate-related information in response to expanded procurement opportunities, according to a paper published in the ‘Review of Accounting Studies’.
The paper – written by Omri Even-Tov (University of California), Guoman She (University of Hong Kong), Lynn Linghuan Wang (University of Hong Kong) and Detian Yang (Fudan University) – also found that companies that disclose more climate information are more likely to win government contracts.
“Taken together, our findings suggest that government procurement opportunities incentivize firms to leverage public disclosure to convey environmental commitments,” the paper concludes.