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Emissions restatements after the SEC's request for public input on climate-related disclosures: Evidence from carbon disclosure project filings

Author

Listed:
  • Aobdia, Daniel
  • Köchling, Gerrit
  • Limbach, Peter
  • Yoon, Aaron

Abstract

This paper analyzes firms' restatements of their Scope 1 emission numbers after the Securities and Exchange Commission's request for public input on climate-related disclosure in March 2021. Using data from the Carbon Disclosure Project, we find a marked increase in the frequency and magnitude of restatements by U.S. public firms, both relative to their previous restatement levels and to those of private firms not subject to SEC oversight. Firms with independently assured emission data, board-level oversight of climate issues, high transition risk, and high institutional ownership restate less upwards but not downwards. Firms with upward revisions in response to the SEC's initiative increase investments in emission-reduction projects. The results are consistent with widespread weaknesses in firms' carbon reporting infrastructures and strategic motives to underreport. They have important implications for regulators, investors, and standard setters by highlighting the need for robust carbon reporting, and the critical role of assurance of sustainability disclosures.

Suggested Citation

  • Aobdia, Daniel & Köchling, Gerrit & Limbach, Peter & Yoon, Aaron, 2025. "Emissions restatements after the SEC's request for public input on climate-related disclosures: Evidence from carbon disclosure project filings," CFR Working Papers 25-11, University of Cologne, Centre for Financial Research (CFR).
    • Handle: RePEc:zbw:cfrwps:333941
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    References listed on IDEAS

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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