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Corporate biodiversity disclosure: The role of institutional factors and corporate governance

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  • Ahmad Hambali
  • Desi Adhariani

Abstract

Extensive environmental degradation also has a negative impact on biodiversity, which plays a crucial role in both human survival and economic development. This condition has prompted various parties, including companies, to provide their contributions in preventing further severe damage. This study aims to examine the role of institutional factors, namely environmental performance and governance at the national level, as well as the role of corporate governance factors represented by board size, the proportion of independent directors, board diversity, and the presence of sustainability committees, in the corporate disclosure of biodiversity initiatives. The sample of this study comprises companies from 37 countries during the period 2016–2020. The study adopts a quantitative approach and utilizes analytical methods such as logistic regression and fixed‐effect panel data analysis. Research findings indicate that the national environmental performance as an institutional factor, board size, and the existence of sustainability committees as representatives of corporate governance mechanisms are positively associated with corporate biodiversity disclosure. Meanwhile, the national governance index and the proportion of independent directors have a negative impact. Lastly, in general, the proportion of female board members does not significantly affect biodiversity disclosure. However, additional tests reveal its significance in companies operating in the environmentally‐sensitive industries.

Suggested Citation

  • Ahmad Hambali & Desi Adhariani, 2024. "Corporate biodiversity disclosure: The role of institutional factors and corporate governance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 5260-5274, November.
    • Handle: RePEc:wly:corsem:v:31:y:2024:i:6:p:5260-5274
    DOI: 10.1002/csr.2865
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    2. Vasiliki Papadopoulou & Sofia Karagiannopoulou & Nikolaos Sariannidis & Grigoris Giannarakis, 2026. "Unmasking Independent Directors: Corporate Social Responsibility Strategy as a Mediator of ESG Controversies in European Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(1), pages 1031-1046, January.
    3. Wang, Yueyang, 2025. "The silent cost of biodiversity loss: Unveiling its impact on institutional ownership," International Review of Financial Analysis, Elsevier, vol. 103(C).
    4. Cosma, Simona & Galletta, Simona & Mazzù, Sebastiano & Rimo, Giuseppe, 2024. "Banks' fossil fuel divestment and corporate governance: The role of board gender diversity," Energy Economics, Elsevier, vol. 139(C).
    5. Silvio Bianchi Martini & Antonio Corvino & Federica Doni & Antonietta Trecca, 2026. "Exploring Biodiversity Disclosure and Financial Performance in the European Context: The Moderating Role of Board Experience," Business Strategy and the Environment, Wiley Blackwell, vol. 35(3), pages 4083-4101, March.
    6. Jérôme, Tiphaine & Poretti, Cédric, 2025. "Stock market reaction to the voluntary adoption of nature-related financial disclosure: An event study," Finance Research Letters, Elsevier, vol. 71(C).

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