The purpose of this study is to empirically analyze the determinants of support for the task force on climate-related financial disclosures (TCFD) from a corporate governance perspective.
The study analyzes a sample of 687 Japanese listed companies over the period from 2017 to 2023, using the Cox proportional hazards and logit models.
The results revealed that companies with strong climate governance, gender-diverse boards and high CO2 intensities were more likely to support TCFD. Furthermore, revisions to the corporate governance code (CGC) enhancing sustainability disclosure have accelerated the adoption of TCFD.
This study provides practical implications for the approaches policymakers should take to promote TCFD adoption and the governance frameworks companies should establish. It also contributes to societal outcomes, including the realization of the Sustainable Development Goals (SDGs).
This study integrates the resource-based view, institutional theory and legitimacy theory into TCFD research by highlighting climate change initiatives and revisions to Japan’s CGC. Furthermore, it is noteworthy that the governance variables demonstrated trends differ from those in previous studies grounded in stakeholder theory.
