What the study found
The study found that European firms with stronger environmental performance were more likely to disclose biodiversity-related information. It also found that climate governance was positively associated with disclosure and strengthened the link between environmental performance and biodiversity disclosure.
Why the authors say this matters
The authors conclude that robust governance structures are needed to support accurate and credible biodiversity-related disclosures. They also suggest that biodiversity disclosure can help promote awareness of biodiversity's importance and limit opportunities to overstate conservation initiatives and overall sustainability performance.
What the researchers tested
The researchers examined the relationship between environmental performance, climate governance, and biodiversity disclosure in European firms. They used data from STOXX600 companies across 17 countries and tested hypotheses grounded in legitimacy, signaling, and stakeholder theories.
What worked and what didn't
Stronger environmental performance was associated with more biodiversity disclosure, which the authors interpret as a sign of genuine commitment rather than symbolic communication. Climate governance was also positively associated with disclosure, and it amplified the performance-disclosure relationship, helping align reporting with actual practices and reducing the risk of greenwashing.
What to keep in mind
The abstract does not describe detailed limitations beyond the study's scope: European firms in the STOXX600 across 17 countries. The summary available here does not provide information about specific model controls, measurement details, or causal claims.
Key points
- Firms with stronger environmental performance were more likely to disclose biodiversity-related information.
- Climate governance was positively associated with biodiversity disclosure.
- Climate governance strengthened the link between environmental performance and biodiversity disclosure.
- The authors interpret the pattern as more consistent with genuine commitment than symbolic communication.
- The study used data from STOXX600 companies across 17 European countries.
Disclosure
- Research title:
- Climate governance strengthens biodiversity disclosure in European firms
- Authors:
- Mohamed Aman, Hussain Muhammad, Hesham Yousef
- Institutions:
- American University of Ras Al Khaimah, Sohag University, University of Chieti-Pescara
- Publication date:
- 2026-03-08
- DOI:
- 10.1002/csr.70538
- OpenAlex record:
- View
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