What motivates CAC 40 companies to disclose information on climate-related financial risks?

Summary In this article, we examine the determinants of CAC 40 companies' compliance with the recommendations of the FSB Task Force on Climate Financial Reporting (TCFD). We use in this analysis a new index measuring the level of compliance of firms with TCFD's recommendations, the Comprehensive Compliance Index (CCI). Using a panel Tobit model, we find that environmentally friendly companies are more compliant with TCFD's recommendations, especially when operating in an industry with high environmental stakes. In addition, media environmental exposure increases the level of compliance of firms with TCFD's recommendations. We also find a strong influence of ownership structure on the CCI as a high shareholder concentration and a high proportion of foreign shareholders decrease the level of compliance with TCFD's recommendations. Overall, our results shed new light on the company's voluntary environmental reporting for regulators seeking to improve financial transparency in relation with climate risks. JEL Classification : G38. Q51. M41. Q56.