Professor Phillip McIlkenny at the University of Ottawa, Telfer School of Management was interviewed by Maclean’s journal about the Disclosure of Climate Change Information.
The study used a sample of 559 observations collected from companies listed on the Toronto Stock Exchange (TSX) between 2008 and 2011. Board effectiveness was measured through the Board Shareholder Confidence Index (BSCI) developed by the University of Toronto Clarkson Centre of Business Ethics and Board Effectiveness. The firms’ climate change disclosure was assessed through data from CDP.
The study found a positive relationship between effective corporate governance and the likelihood of voluntary climate change disclosures. It suggests that board attributes can influence a firm’s decision to reveal climate change risks and take action to mitigate those risks.
“The problem for investors is that the information is not integrated into the reporting,” says Philip McIlkenny, an associate professor at the University of Ottawa’s Telfer School of Management, who has studied the issue. “And it’s currently voluntary because there’s no unified code.”
The study, “Board Effectiveness and the Voluntary Disclosure of Climate Change Information is authored by professors Walid Ben Amar and Phillip McIlkenny of the University of Ottawa. The study was published online in Business Strategy and the Environment earlier this year and is forthcoming in a print edition of the journal.