Evolution of Carbon Footprint Data in ESG Investing: A Literature Trace from Voluntary Disclosure to Mandatory Compliance

DOI

10.2991/978-2-38476-585-0_51How to use a DOI?

Keywords

“Carbon Footprint”; “ESG Investing”; “Climate Disclosure”; “Mandatory Reporting”; “Voluntary Disclosure”; “EU CSRD”

Abstract

Carbon footprint data has evolved from a marginal corporate social responsibility (CSR) indicator to a core factor in ESG (Environmental, Social, Governance) investment decisions over the past two decades. This paper traces the evolutionary trajectory of carbon footprint data application in ESG investing through a systematic literature review, identifying three distinct phases: the embryonic phase (2000–2010), institutionalization phase (2011–2020), and mandatory compliance & standard convergence phase (2021–present). By analyzing Web of Science, and other databases (2000–2025), it explores how disclosure mechanisms-voluntary versus mandatory-have shaped investor behavior, capital allocation, and market dynamics. Theoretically, it integrates information asymmetry theory, institutional change theory, and signaling theory to explain shifts in stakeholder responses. Practically, it compares regulatory impacts in the EU, U.S., and China, highlighting lessons for policymakers, investors, and corporations. The findings reveal that institutional design of disclosure rules directly influences the reliability of carbon data and its utility in sustainable investment strategies, with mandatory frameworks significantly improving data comparability and accelerating capital reallocation toward low-carbon assets.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yunlong Deng
PY  - 2026
DA  - 2026/06/18
TI  - Evolution of Carbon Footprint Data in ESG Investing: A Literature Trace from Voluntary Disclosure to Mandatory Compliance
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 449
EP  - 457
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_51
DO  - 10.2991/978-2-38476-585-0_51
ID  - Deng2026
ER  -