climate change

How corporations disclose their carbon emissions information has become a crucial issue for corporate governance and in the capital market in recent years. In September 2025, CIEL Deputy Director and Associate Professor Chao-Hung Chen published an article titled “Carbon Emission Disclosure and Greenwashing Risk in the Capital Market” in the NTU Law Journal.

Professor Chen ‘s study examines the disclosure practices of publicly listed companies in Taiwan regarding their GHG emissions between 2011 and 2021. While the article agrees that disclosure is an important tool to promote carbon reduction, the study suggest that the effectiveness of carbon disclosure must depend on whether the information disclosed is accurate, comprehensive, and comparable to offer useful data to the market.

Highlights:

1. Limited effectiveness voluntary disclosure — Few companies disclosed their carbon emission data voluntarily before mandatory rules took effect, supporting the move toward a mandatory disclosure regime.
2. Fragmented and inconsistent content — Disclosure statements were often brief and inconsistent in format and content. Much information lacked third-party verification, showing signs of selective or incomplete reporting.
3. Significant greenwashing risk — Many firms relied on vague qualitative descriptions rather than concrete quantitative data, making it difficult for investors and regulators to assess real carbon reduction outcome.

Professor Chen emphasizes that regulators should strike a balance between lowering disclosure costs and enhancing the substance of disclosure as well as to establish quantifiable data over time in order to strengthen the credibility and market value of ESG information.

Abstract：https://acrobat.adobe.com/id/urn:aaid:sc:ap:8c85c7c9-e28a-47a4-b0e5-34efa25e0477