Climate-Risk Disclosure Capability in Mid-Sized Firms

Annabelle Braasch

Climate-Risk Disclosure Capability in Mid-Sized Firms

Author(s)	Annabelle Braasch
Country	United States
Abstract	Climate-related financial disclosure increasingly requires firms to translate environmental uncertainty into governance processes, risk assessments, measurable indicators, and decision-useful corporate reporting. While large corporations generally possess specialized sustainability teams, sophisticated enterprise systems, and greater access to external expertise, mid-sized firms frequently operate with narrower managerial, financial, and analytical resources. Their principal difficulty may therefore lie not simply in willingness to disclose climate information but in developing the organizational capability required to produce reliable, consistent, and strategically meaningful disclosure. This study develops and evaluates a climate-risk disclosure capability framework for mid-sized firms through a transparent simulation-based research design. The framework integrates governance oversight, climate-risk identification, data infrastructure, metrics and targets, disclosure integration, and scenario-analysis capability. A synthetic dataset representing 240 hypothetical mid-sized firms was constructed to examine how governance maturity, data capability, organizational resources, stakeholder pressure, and scenario-analysis expertise may influence overall disclosure capability. The simulated results indicate that governance oversight and climate-data maturity are the strongest contributors to disclosure capability, while scenario-analysis expertise remains a material but less developed organizational competence. The capability profile further indicates that firms may develop basic risk recognition substantially earlier than they develop forward-looking scenario analysis or integration of climate considerations into mainstream corporate reporting. These results should not be interpreted as observations of actual firms; rather, they demonstrate theoretically plausible relationships requiring empirical validation..
Keywords	climate-risk disclosure; mid-sized firms; climate governance; sustainability reporting; scenario analysis; environmental accounting; disclosure capability; corporate risk management
Field	Engineering
Published In	Volume 6, Issue 2, March-April 2025
Published On	2025-03-24

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American Journal of Advanced Multidisciplinary Innovation and Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Climate-Risk Disclosure Capability in Mid-Sized Firms

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