As concerns regarding corporate sustainability and environmental responsibility continue to mount, the phenomenon of greenwashing emerges as an area of critical scrutiny. While numerous Greenwashing Indicator (GWI) frameworks have been devised to measure and identify greenwashing practices, they predominantly target sustainability reports and green-labeled products. The intersection of greenwashing indicators with financial communications, such as SEC Filings Form 10-K, remains relatively underexplored.
This research aims to bridge this gap by examining how sustainability is manifested in financial reporting, particularly within SEC Filings Form 10-K. This focus is pivotal because these SEC filings hold legal weight and undergo thorough examination. This approach offers a unique perspective on corporations' climate action positions. In our market-driven capitalist environment, publicly traded companies often prioritize profits over environmental concerns, guided by shareholder interests. This study intends to illuminate the extent to which climate action is integrated into a company's core operations, strategy, and risk management. Given the legally binding nature of 10-K filings, they serve as an ideal arena for such exploration.
This capstone project investigates how climate sentiment is portrayed in corporate financial reporting, focusing on SEC 10-K filings from leading S&P 50 companies. These filings offer detailed insights into financial performance, risks, and management discussions, providing a rich dataset for analyzing corporate behaviors with sustainability and environmental concerns. Through meticulous examination of these legally binding financial disclosures, this study sheds light on the extent to which companies address environmental issues and the implications for environmental stewardship. Drawing inspiration from established greenwashing indicator frameworks, the study develops a climate sentiment framework tailored to the context of SEC 10-K filings. By contributing to the broader discourse on environmental challenges, stewardship, and corporate transparency, this research offers valuable insights for academia, industry stakeholders, and policymakers grappling with environmental issues in the corporate sector. It provides a nuanced understanding of corporate practices and highlights avenues for improving environmental reporting and accountability.
As this project exclusively uses publicly available data, privacy protection concerns are mitigated. Ethical considerations are strictly adhered to, ensuring transparency and responsibility in data collection, storage, analysis, and sharing processes.