4.8 Article

Water disclosure and financial reporting quality for social changes: Empirical evidence from China

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Mind the Gap: Is Water Disclosure a Missing Component of Corporate Social Responsibility?

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Summary: Corporate water stewardship is becoming a critical issue in a wider socio-political context, with corporate self-regulation playing a powerful role in reducing corporate water opaqueness. The study investigates the rationale behind, and factors contributing to, corporate decisions to voluntarily disclose water information via the CDP, showing that innovative proxies for corporate self-regulation are significantly related to companies' propensity to disclose water information. Additionally, sharing water information privately with key institutional investors is identified as a strategic tool for implementing self-regulation.

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