Document Type
Thesis
Date of Degree Completion
Spring 2026
Degree Name
Master of Professional Accountancy (MPA)
Department
Accounting
Committee Chair
Dr. Han Donker
Second Committee Member
Dr. Toni Sipic
Third Committee Member
Dr. Steven Zhu
Abstract
This study examines the relationship between environmental scores, environmental performance, disclosure quality, and firm characteristics using a sample of publicly traded firms observed in 2020 and 2021. A two-stage regression framework was used to separate environmental scores into components explained by observable environmental performance, firm characteristics, disclosure practices, and environmental commitments. Results indicate that emissions intensity has a statistically significant but economically small relationship with environmental scores. In contrast, disclosure quality measures exhibited strong positive associations with environmental scores. Firms reporting emissions, participating in CDP, disclosing emissions targets, and adopting science-based targets received higher environmental scores independent of environmental performance. Firms exhibiting higher discretionary accruals, used as a proxy for earnings management, received lower environmental scores, suggesting environmental ratings may incorporate broader indicators of reporting quality and governance rather than rewarding aggressive reporting behavior. Findings suggest ESG ratings agencies place greater emphasis on transparency, disclosure quality, and environmental commitments than current environmental outcomes. While this may create susceptibility to greenwashing, structured reporting frameworks and science-based targets appear to partially mitigate this risk through greater reporting rigor and credibility.
Recommended Citation
Steenerson, Alison, "Carbon Emissions and Greenwashing: Do High ESG Scores Reflect Real Decarbonization?" (2026). All Master's Theses. 2309.
https://digitalcommons.cwu.edu/etd/2309