Chapter 15: Usefulness of Corporate Carbon Information for Decision-Making

There is a general consensus that climate change negatively affects the physical environment, our ecosystem, economy, and the society. Thus, corporate response to global warming is becoming one of the most important topics in business studies. Carbon information is increasingly relevant for various users for their decision-making. This chapter provides a review of previous studies regarding the usefulness, quality, and adequateness of climate change information disclosed. The chapter explains how carbon reports can be used to assess GHG reduction performance, monitor business climate risks, and assist the decision-making of investors. In addition, we discuss the incentives of managerial voluntary carbon disclosure. We highlight the role the emerging carbon accounting and reporting system can play for the measurement of carbon assets and liabilities, carbon strategy development, and carbon management toward a decarbonized future.