Carbon Emission Disclosure: A Systematic Literature Review Of Theoretical Perspectives, Corporate Practices, And Future Research Directions
DOI:
https://doi.org/10.56956/gw4trx93Keywords:
carbon emission disclosure, carbon disclosure, legitimacy theory, sustainability reporting, systematic literature reviewAbstract
Carbon Emission Disclosure (CED) has emerged as a crucial element of corporate sustainability reporting because of rising stakeholder demands for environmental principles, openness and responsibility. Despite the rapid growth of CED research, existing studies remain fragmented across theoretical perspectives and empirical contexts. This study aims to synthesize recent literature by identifying the dominant theoretical perspectives, explaining how these theories interpret corporate carbon disclosure practices, and examining the associated benefits, challenges, and barriers. A Systematic Literature Review (SLR) was conducted following the PRISMA 2020 guidelines. The review analyzed 37 peer-reviewed journal articles indexed in the Scopus database and published between 2021 and 2026. The findings reveal that Legitimacy Theory is the most frequently adopted theoretical perspective, followed by Stakeholder Theory, Agency Theory, and Signaling Theory, indicating that carbon disclosure is primarily viewed as a strategic response to societal expectations and stakeholder pressures. The review further shows that carbon disclosure is influenced by corporate governance, organizational capabilities, regulatory requirements, investor expectations, and supply chain pressures. High-quality disclosure enhances transparency, organizational legitimacy, stakeholder trust, environmental performance, and access to sustainable finance. However, companies continue to face challenges related to inconsistent reporting standards, limited Scope 3 emissions data, high implementation costs, and greenwashing concerns. This review presents a thorough integration of recent CED research and suggests implications for forthcoming studies and corporate sustainability reporting.
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