Corporate Carbon Emission Reporting in Bangladesh - A study on Pharmaceuticals and Chemical Industries Limited

Abstract

Motivation: Bangladesh is a ‘front line’ country and is considered one of the most vulnerable countries in the world according to the climate change index in 2004, though the contribution of carbon emission is insignificant but its effects into climate change is worst. Corporate activities contribute widely in case of global Greenhouse gas emission. As climate change risk and business risk is increasing due to climate change and carbon emission in the environment, it is important to control carbon emission for making sustainable development in the corporate world. Carbon emission reporting is an effective mechanism to address carbon related issues and as an emerging country the Bangladeshi companies are trying to make carbon emission related disclosure but level of such disclosure is very low .To handle this severe phase, government and all other stakeholders should come forward. The purpose of the study is to observe the focus of business organization of Bangladesh regarding the carbon emission reporting process. Idea: When developed nation showed concern and accountability regarding carbon emission and carbon management for their social and environmental impact but in developing countries carbon emission is not considered as the key issue in case of environmental degradation. Academics have not shown much concern to explore the companies’ attempts and the determinants or factors behind the carbon emission and climate change related disclosure practices of developing countries to make sustainable development in the society and environment. Objectives: The study is designed to examine the corporate carbon emission disclosure systems or habits in case of less developed countries like Bangladeshi companies. Data: The work of sampling of 27 listed companies is conducted carefully from pharmaceutical industry in the Dhaka stock exchange those have been taken according to the year 2020-2021.Tools: An un-waited Corporate Carbon Emission Reporting Index (CCERI) has made and adopted to recognise disclosure practice level of selected companies. Findings: We have observed that the level of disclosure and the extent of information practiced by selected companies is very poor. The finding is the mean CCERI is only 2.74 amongst the highest possible score of 18.It is matter of surprise that companies from polluting industry like pharmaceutical industry have very poor corporate carbon disclosure and most of the disclosed information is positive news and descriptive in nature. Contributions: The study will create awareness about the increasing carbon emission and its climate change effects amongst the regulatory bodies and all the stakeholders, thus a comprehensive approach of corporate carbon emission reporting can be implemented to confirm the sustainability of corporate carbon reporting structure. In an experience of having lack of responsibility and lack of guidance in case of corporate carbon emission disclosure in Bangladesh, proper corporate guidelines provided by Securities and Exchange Commission and a specific regulatory framework regarding corporate carbon emission reporting should be made compulsory requirement by law. Government intervention is also necessary to enforce the companies regarding carbon emission reporting.