Corporate Biodiversity Disclosure Under SDG 15: The Role of Internal and External Governance in Emerging Asian Economies

ABSTRACT

This study examines how internal (corporate) and external (country‐level) governance mechanisms jointly influence corporate biodiversity disclosure under SDG 15 (CBD_SDG15) in emerging Asian economies. Drawing on stakeholder theory and institutional theory, the study conceptualises internal and external governance as complementary governance mechanisms operating across organisational and national levels. Using a balanced panel of 1800 firm‐year observations from five emerging Asian economies over 2016–2017 to 2021–2022, CBD_SDG15 is measured through manual content analysis based on GRI‐2016 biodiversity indicators aligned with SDG 15 targets. The findings reveal an increasing trend in biodiversity disclosure over the study period. Panel Tobit estimation, supported by robustness analyses using fractional logit, IV‐2SLS and System GMM estimators, indicates that both corporate governance and country‐level governance positively influence biodiversity disclosure. Furthermore, stronger country‐level governance enhances the effectiveness of corporate governance, whereas additional sectoral analysis shows that the influence of corporate governance is particularly pronounced among environmentally sensitive firms. The study contributes to the biodiversity disclosure literature by demonstrating that the effectiveness of corporate governance depends on the surrounding institutional environment and the environmental context in which firms operate, offering practical insights for policymakers and firms seeking to advance SDG 15 through improved biodiversity disclosure.