Global Warming and Corporate Sustainability of Nigerian Listed Firms

The intersection of global warming and corporate sustainability has attracted increasing scholarly and policy attention, yet empirical evidence from emerging markets—particularly Nigeria—remains thin. This study investigates the impact of global warming on corporate sustainability, specifically carbon emissions reporting and environmental disclosures, among 148 listed firms on the Nigerian Exchange Group (NGX) over the period 2011–2025. Drawing on a balanced panel dataset of 2,220 firm-year observations, the study employs fixed-effects and random-effects panel regression models, alongside system Generalised Method of Moments (GMM) estimation to address potential endogeneity. The theoretical underpinning integrates Stakeholder Theory, Legitimacy Theory, and the Resource-Based View. Control variables include firm size, leverage, industry type, GDP growth, inflation, regulatory environment, board composition, sustainability committees, and exposure to carbon-intensive sectors. Results reveal that rising average global temperatures and associated climate risk indicators are positively associated with voluntary carbon emission disclosures but negatively correlated with actual emission reduction efforts, suggesting a performative rather than substantive sustainability response among Nigerian listed firms. Larger firms and those with dedicated sustainability committees demonstrate significantly higher environmental disclosure quality. Firms operating in carbon-intensive sectors—oil and gas, cement, and power—exhibit the highest emissions but paradoxically produce more extensive, though selectively framed, disclosures. The regulatory environment, proxied by the Securities and Exchange Commission's sustainability disclosure requirements, moderates this relationship positively. These findings carry critical implications for regulators, boards, investors, and policymakers seeking to align corporate behaviour with climate imperatives in sub-Saharan Africa.