Navigating Environmental Transparency: Antecedents and Emission Implications of Voluntary Disclosure among International Contractors

Abstract

International contractors are under pressure to address growing demands for environmental transparency by engaging in voluntary disclosure. Although previous studies have examined the content and quality of environmental disclosure, less is known about why some contractors participate in standardized third-party disclosure systems while others do not. Drawing on neo-institutional theory and the resource-based view, this study examines factors associated with international contractors’ participation in the Carbon Disclosure Project (CDP). Using 832 firm-year observations from 98 Engineering News-Record–listed international contractors headquartered in 26 countries, the results show that home-country institutional voids decrease the likelihood of CDP participation, whereas internationalization, firm size, and financial performance increase it. Furthermore, internationalization partially mitigates the negative imprinting effect of weak domestic institutions. However, participation in CDP is not associated with significantly lower greenhouse gas emissions, suggesting that voluntary disclosure may not function as evidence of superior environmental performance. These findings provide valuable insights for stakeholders aiming to foster genuine environmental transparency in the construction industry.