Adam Smith Business School

Professor Igor Kadach, IESE Business School

"Climate Disclosures and Decarbonization along the Supply Chain"
Wednesday, 26 March 2025. 12:00-13:30
Room 282 Hothouse, Adam Smith Business School 

Abstract

Climate Disclosures and Decarbonization along the Supply Chain

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4850301

This paper examines the spillover effect of climate-related disclosures over global supply chains. Our tests rely on a wide international sample of customer[1]supplier pairs and exploit the unique features of the CDP, the world-leading platform of corporate climate risk disclosures. We find a strong positive association between customer and supplier disclosures to the CDP. A battery of tests aimed at tightening identification supports the interpretation that the association is driven by customers actively demanding climate-related information and suppliers responding to this demand. We also observe that supplier CDP disclosures likely induced by customers’ demand are associated with subsequent lower carbon emissions. Moreover, customers are more (less) likely to terminate relationships with the most (least) polluting suppliers and with those not meeting their disclosure demands. Taken together, our results shed light on the role of global supply chains in propagating climate disclosure and decarbonization efforts.

 

Bio

Prof. Igor Kadach is an Associate Professor of Accounting and Control at IESE Business School. He holds a B.S. in Economics from Moscow State University, a M.A. in Economics from New Economic School, and a Ph.D. in Accounting from the Stern School of Business, New York University. Professor Kadach’s research interests concentrate on the association between corporate environmental performance, institutional ownership, the structure ofexecutive compensation, and voluntary disclosure. In his dissertation, Igor studied the interplay of equity mispricing and managers’ earnings forecast decisions. He has active projects related to corporate carbon emissions, environmental disclosure, and the role of equity analysts. Within these settings, Igor´s research explores complex and non-linear value implications of information and the disclosure choices of managers. His research appears in leading academic journals including Journal of Financial Economics, Journal of Accounting Research, and Journal of Accounting and Economics. Prof. Kadach is the recipient of several research prizes, including IEAF/FEF Premio Antonio Dionis (2019) and the outstanding paper award at the 14th Annual Research Conference of ARCS (2022). At IESE, Prof. Kadach teaches classes on Analysis of Business Problems and Managerial Accounting, at the MBA, EMBA, and executive levels.

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First published: 26 February 2025