Drivers of Scope 3 Emissions Disclosure Quality—CDP Analysis

ABSTRACT

Scope 3 emissions account for a significant portion of a supply chain's carbon footprint, yet very little research explores the key drivers of high‐quality Scope 3 disclosures. Additionally, while climate governance is a vital part of both improving carbon performance and ensuring corporate accountability, its broader impact on disclosure remains underexplored. Integrating insights from the natural resource‐based view, this study examines how climate governance and supplier engagement influence the quality of Scope 3 carbon disclosures. Using CDP data from 2018 to 2022, we empirically test the relationships between these factors and find that climate governance partially mediates the effect of supplier engagement on Scope 3 disclosure quality. Our findings offer new insights into the mechanisms driving comprehensive carbon reporting and provide practical implications for policymakers, corporate managers, and researchers. By highlighting the interplay between governance structures and supply chain collaborations, this study not only underscores the importance of a multifaceted approach to improving environmental disclosure quality, it also equips stakeholders with actionable strategies to enhance transparency and address the challenges associated with climate change.