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When climate speaks, who answers? Climate change exposure, environmental disclosure and CEO characteristics in Europe

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  • Alzarah, Mohammed
  • Kourtis, Apostolos
  • Markellos, Raphael N.

Abstract

We study whether firm-specific climate change exposure affects environmental disclosure and how CEO traits influence this relationship. Using data from STOXX Europe 600 firms, we find that higher climate risk leads to higher-quality disclosure. A one-standard-deviation increase in climate change exposure is associated with up to a 28% increase in the disclosure score, relative to the sample average. This effect is stronger for firms with longer-tenured or younger CEOs. Our findings highlight that firm-level climate risk and CEO experience drive environmental transparency, even under Europe’s rigid reporting standards.

Suggested Citation

  • Alzarah, Mohammed & Kourtis, Apostolos & Markellos, Raphael N., 2026. "When climate speaks, who answers? Climate change exposure, environmental disclosure and CEO characteristics in Europe," Economics Letters, Elsevier, vol. 258(C).
    • Handle: RePEc:eee:ecolet:v:258:y:2026:i:c:s0165176525005907
    DOI: 10.1016/j.econlet.2025.112753
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    References listed on IDEAS

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