An Examination of Assurance Practices on Carbon Emission Disclosures: Evidence From Italy and Spain

This study explores corporate carbon assurance practices through a content analysis of the GHG assurance statements in the TCFD reports from a sample of Italian and Spanish companies listed on the FTSE MIB and IBEX 35 between 2021 and 2023. This study also analyses the reference to carbon information in the assurance statement of nonfinancial reports (NFRs). The results show that the assurance on GHG emissions is an underdeveloped and emerging issue. A three-fold approach can be outlined. The “early movers” companies draw up and assure the TCFD report. The “forthcomings” publish a TCFD report that is not assured. The “latecomers” do not publish a standalone GHG assurance statement but address carbon issues within their NFR assurance statement. Through the lens of legitimacy and signalling theories, this research contributes to understanding trends in GHG assurance and underlines the need to improve the reliability of carbon disclosure to meet stakeholder expectations and comply with the latest advancements in sustainability standards and regulations.