Carbon Accounting Disclosures on the Firm Value of Listed Consumer Goods Firms in Nigeria

This study examined the effect of carbon accounting disclosures on the market capitalization of listed consumer goods firms in Nigeria. Specifically, it investigated the impact of carbon emission disclosure, carbon reduction strategies and targets disclosure, and energy efficiency and low-carbon initiatives disclosure on firm value. The study was motivated by increasing global concern over climate change and the growing importance of environmental transparency in corporate reporting, particularly in emerging economies where disclosure practices remain weak and inconsistent. An ex post facto research design was adopted, and data were obtained from the annual reports, sustainability reports, and financial statements of 17 listed consumer goods firms on the Nigerian Exchange Group (NGX) covering the period 2015–2024, yielding 170 firm-year observations. Carbon accounting disclosure was measured using a structured disclosure index, while firm value was proxied by market capitalization. Panel regression techniques were employed to analyze the data. The findings revealed that carbon emission disclosure and energy efficiency and low-carbon initiatives disclosure have significant positive effects on market capitalization, indicating that firms with higher transparency in emissions reporting and stronger operational sustainability initiatives tend to achieve higher market value. However, carbon reduction strategies and targets disclosure showed no statistically significant effect on market capitalization. The results suggest that investors in Nigeria place greater value on observable and operational sustainability actions than on forward-looking commitments. The study concludes that carbon accounting disclosures are important determinants of firm value in the Nigerian consumer goods sector. It recommends that firms enhance emissions transparency and invest in energy-efficient and low-carbon initiatives, while regulators strengthen disclosure standards to improve consistency and comparability of carbon reporting.

Carbon accounting disclosure, market capitalization, consumer goods firms, Nigeria, sustainability reporting, climate change

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