The role of regulatory, financial, and reputational pressures on carbon disclosure quality and greenwashing.

Abstract

This study investigates how regulatory, financial, and reputational pressures jointly influence the quality of corporate carbon disclosures and the risk of greenwashing among South African corporates. The research addresses the persistent challenge of symbolic compliance in voluntary reporting environments, where external pressures may not always translate into substantive transparency. Employing a qualitative methodology, the study draws on in-depth interviews with corporate managers across diverse sectors to explore organizational responses to evolving sustainability expectations. The findings reveal that while regulatory and financial market pressures drive proactive disclosure, the absence of standardized requirements and robust enforcement often results in inconsistent and sometimes superficial reporting. Internal governance, data quality, and assurance mechanisms emerge as critical enablers of credible disclosures, while institutional gaps and resource constraints remain significant barriers. The study concludes with practical recommendations for business managers, policymakers, and regulators to strengthen disclosure credibility, reduce greenwashing risk, and align with global best practices. These insights contribute to the broader understanding of sustainability reporting in developing economies and offer actionable guidance for enhancing transparency and accountability in South African corporate climate disclosures.