Corporate biodiversity disclosure: The role of institutional factors and corporate governance

Abstract Extensive environmental degradation also has a negative impact on biodiversity, which plays a crucial role in both human survival and economic development. This condition has prompted various parties, including companies, to provide their contributions in preventing further severe damage. This study aims to examine the role of institutional factors, namely environmental performance and governance at the national level, as well as the role of corporate governance factors represented by board size, the proportion of independent directors, board diversity, and the presence of sustainability committees, in the corporate disclosure of biodiversity initiatives. The sample of this study comprises companies from 37 countries during the period 2016–2020. The study adopts a quantitative approach and utilizes analytical methods such as logistic regression and fixed‐effect panel data analysis. Research findings indicate that the national environmental performance as an institutional factor, board size, and the existence of sustainability committees as representatives of corporate governance mechanisms are positively associated with corporate biodiversity disclosure. Meanwhile, the national governance index and the proportion of independent directors have a negative impact. Lastly, in general, the proportion of female board members does not significantly affect biodiversity disclosure. However, additional tests reveal its significance in companies operating in the environmentally‐sensitive industries.