The Impact of ISSB’s Scope 3 GHG Emissions Validation on US Manufacturers’ Stock Valuations: Analyzing the Role of Supplier Complexity

Tian, Jingyuan, Jia, Fu, Chen, Lujie and Xing, Xinjie ORCID: 0000-0001-6277-5045 (2025) The Impact of ISSB’s Scope 3 GHG Emissions Validation on US Manufacturers’ Stock Valuations: Analyzing the Role of Supplier Complexity Transportation Research Part E: Logistics and Transportation Review, 193. p. 103850. ISSN 1366-5545

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Abstract

The International Sustainability Standards Board's (ISSB's) validation of Scope 3 greenhouse gas emissions disclosure requirements represents a pivotal advancement in sustainability reporting. This study examines the implications of this validation for US-listed manufacturing firms’ stock valuations, taking into account the moderating effect of supplier complexity. Employing the event study methodology and cross-sectional regression analysis, our study reveals a positive market response to the ISSB's validation. Moreover, we observe that supplier concentration complexity and supplier spatial complexity mitigate this positive impact, while supplier horizontal complexity does not exert a significant effect on this positive impact. This highlights the critical role of supply chain optimization in fostering sustainable business practices. Our study contributes to the literature by empirically assessing the impact of Scope 3 emissions disclosure on firm performance and exploring the moderating role of supplier complexity, thereby enhancing our understanding of sustainability disclosures within supply chain operations. Our findings offer crucial insights for manufacturers, investors, and policymakers as they navigate the complex dynamics between sustainability disclosures, supply chain management, and stock valuations.

Item Type:	Article
Uncontrolled Keywords:	3509 Transportation, Logistics and Supply Chains, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, 13 Climate Action, 12 Responsible Consumption and Production
Divisions:	Faculty of Humanities & Social Sciences Faculty of Humanities & Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	28 Nov 2024 08:07
Last Modified:	21 Jan 2026 05:18
DOI:	10.1016/j.tre.2024.103850
Related Websites:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3188919
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