Greenhouse gas emissions reporting in the banking sector: the Chinese experience

This thesis focuses on the current state of Greenhouse Gas (GHG) emissions reporting in the Chinese banking sector and the influence of various internal and external factors, including environment-friendly human resource management (HRM) practices, in influencing Chinese banks’ GHG reporting.1 As the Chinese banking sector represents a significant component of the international financial market, the analysis of Chinese banks’ GHG reporting will inform industries in other sectors and enable them to use the banking sector’s reporting framework as a benchmark for disclosing GHG-related information.

The thesis comprises three papers and employs a range of different research methods, including a case study, a survey, and content analysis. Paper One examines the influence of specific internal and external factors on the GHG reporting practices of Chinese banks. This paper employs a two-stage case study approach, focusing on three state-owned and two joint-stock commercial banks using secondary and interview data. In line with Bourdieu’s theory of practice, an Awareness-Habitus-Capital framework is used to explore the factors that influence the process of disclosing GHG-related information. The findings indicate that the internal factors influencing GHG reporting derive from external influences, the process of GHG disclosures and internal management reform and adjustments. In addition, the banks’ experiences in the process of disclosing GHG-related information uncover shortcomings in conducting internal management reform and external assurance.

Paper Two examines the role of environment-friendly HRM in influencing Chinese banks’ employee attitudes towards GHG disclosures based on a paper-based survey of 15 large commercial banks (five state-owned, six joint-stock, one city and two rural commercial banks, and one postal savings bank). This paper also explores the mediating role of HRM-related and financial performance outcomes in the association between environment-friendly HRM practices and employees’ attitudes towards GHG disclosure. The results indicate that environment-friendly HRM enhances employee attitudes towards GHG reporting both directly and indirectly, through improved financial performance outcomes.

Paper Three compares the reporting practices and quality of Chinese banks’ GHG disclosures across banks controlled by different levels of governments (e.g., state, local/provincial governments). The paper employs a two-stage content analysis approach, examining the CSR (or sustainability) reports of five state-owned, ten joint-stock and seven city commercial banks from 2014 to 2018. The results indicate an increasing trend in the extent, comparability and accuracy of the banks’ GHG disclosures. The findings also show that the reporting practices and quality of state-owned commercial banks’ GHG disclosures are better than that of joint-stock and city commercial banks. However, state-owned, joint-stock and city commercial banks’ GHG disclosures lack transparency, comparability and reliability and tend to be symbolic, primarily disclosing positive, simple, general and descriptive information.

The thesis provides constructive suggestions to guide Chinese banks to improve their GHG disclosures and provides a reference framework for Chinese governments to promote the GHG reporting of specific types of banks based on their distinctive ownership structure. In particular, the findings highlight the importance of implementing environment-friendly HRM practices in order to improve employee attitudes towards GHG disclosure. In addition, the findings highlight the importance of establishing an internal supervision mechanism to enhance GHG disclosures through regularly monitoring and inspecting the implementation of environment-friendly HRM practices and employees’ performance on GHG reporting. Finally, the results will encourage the different levels of Chinese government to jointly develop a systematic and standardised GHG reporting system with a supervision mechanism to ensure the transparency, balance, comparability, accuracy and reliability of GHG disclosures.