ABSTRACT
In this study, I conduct a global analysis of the development and quality of corporate voluntary carbon management systems (CMSs) and examine the association between the quality of a CMS and exposure to carbon opportunities. I use an international sample of companies that respond to the CDP climate change survey from 2011 to 2020. The quality of a CMS is measured following the framework proposed by Tang and Luo (2014) and Luo and Tang (2016). The descriptive analysis shows that the adoption of carbon management practices and the overall quality of CMSs vary by year, sector, and country/region. The regression analysis reveals that firms that adopt a higher-quality CMS are exposed to more carbon opportunities. This positive association is stronger for firms in countries that have implemented a national emissions trading scheme and for firms in carbon-intensive sectors. This study has significant implications for managers, policymakers, investors, and other stakeholders.
