Rudi Hartono, Yohanes Kamakaula

Climate Risk Disclosure in Mining: Transparency and Corporate Accountability

Introduction

Climate risk disclosure in mining: transparency and corporate accountability. Climate risk disclosure (CRD) is vital for mining transparency & accountability. This study analyzes CRD quality, challenges like greenwashing, and effective reporting.

Abstract

The mining industry is both a major contributor to climate change and highly exposed to climate-related risks, making climate risk disclosure (CRD) a critical tool for enhancing corporate transparency and accountability. However, despite increasing reporting practices, the quality and consistency of climate disclosures remain uneven. This study aims to analyze how CRD contributes to transparency and accountability in the mining sector. The research employs a qualitative approach using a systematic literature review and document analysis of relevant academic studies and reporting frameworks such as TCFD and GRI. Data were collected through structured stages of identification, screening, eligibility, and inclusion, and analyzed using thematic and content analysis. The findings indicate that while climate disclosures are increasingly adopted, many remain symbolic and lack integration with financial impacts and strategic decision-making. High-quality disclosures—characterized by comprehensive emission reporting, governance involvement, and adherence to international standards—enhance transparency and accountability. However, challenges such as greenwashing, inconsistent standards, and weak market responses persist. In conclusion, climate risk disclosure has significant potential to strengthen transparency and accountability in the mining industry, but its effectiveness depends on the depth, consistency, and substantive integration of disclosed information.

Review

This paper addresses a highly pertinent and critical issue concerning climate risk disclosure (CRD) within the mining industry, a sector uniquely positioned as both a significant contributor to and a vulnerable recipient of climate change impacts. The authors effectively frame the research by highlighting the uneven quality and consistency of existing disclosure practices, thereby establishing a clear need for a deeper analysis into how CRD genuinely contributes to corporate transparency and accountability. The study's focus on mining is particularly commendable, as it spotlights a vital industry where effective climate governance and disclosure are paramount for sustainable development and stakeholder trust. Employing a qualitative research design, the study utilizes a systematic literature review and document analysis of prominent reporting frameworks such as TCFD and GRI. This approach is appropriate for synthesizing existing knowledge and identifying overarching themes and gaps in disclosure practices. The findings reveal a crucial disconnect: while CRD adoption is on the rise, many disclosures remain largely symbolic, lacking substantive integration with financial implications and strategic decision-making processes. The research adeptly identifies the hallmarks of high-quality disclosures – comprehensive emission reporting, robust governance involvement, and adherence to international standards – as key drivers of enhanced transparency. Conversely, it also acknowledges persistent challenges, including greenwashing, inconsistent reporting standards, and weak market responses, which collectively undermine the effectiveness of CRD. The paper convincingly argues for the significant potential of CRD to bolster transparency and accountability within the mining sector, contingent on the depth, consistency, and substantive integration of the disclosed information. This study offers valuable insights for regulators aiming to develop more robust reporting mandates, for companies striving to move beyond performative disclosures, and for investors seeking genuinely decision-useful information. While the reliance on a systematic literature review and document analysis provides a broad overview, future research might consider incorporating primary data from mining companies or stakeholder interviews to further explore the mechanisms and barriers to substantive disclosure. Nevertheless, this work serves as an important contribution to the ongoing discourse on corporate sustainability reporting, providing a foundational understanding of the current state and future imperatives for climate risk disclosure in a high-impact industry.

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