The Role of CDP Disclosure to Improve Access to Capital
Do climate-related disclosures lead to better financial performance, or are they merely a symbolic measure to improve public reputation, without materially affecting the firm’s performance? Are capital allocation decisions affected by climate-related disclosures? Does disclosing climate-related information create value and does it justify the costs? If so, where should firms disclose climate-related information given the proliferation of rules, guidelines and standards on sustainability?
To help answer some of these complex questions, this research note examines one dimension in which climate-related disclosures could affect firm performance: access to capital.