Corporate intentions and behaviours when complying with mandatory assurance of climate reporting: a qualitative study of New Zealand reporting entities

Abstract

Purpose This study aims to examine how reporting entities in New Zealand have responded to mandatory requirements for assurance of climate reporting and the behavioural intentions that drive such responses. Design/methodology/approach The authors interviewed professionals from 15 New Zealand reporting entities mandated to obtain assurance in their climate reporting. They draw on institutional theory and the Theory of Planned Behaviour when analysing the data for key themes. Findings The introduction of mandatory assurance of climate reporting created intense social pressure on reporting entities. This pressure, coupled with negative attitudes towards the mandate and a reduced sense of control, influenced how reporting entities approached compliance. Three distinct behavioural intentions emerged: risk aversion, financial conservatism and capability building. Risk-averse entities attempted to avoid audit modifications. Financially conservative entities attempted to minimise costs by relying on internal resources and low-cost external support. Those pursuing capability building invested in internal capabilities. These reflect a defensive response to the mandate, aimed at avoiding audit modifications while retaining a sense of control through cost minimisation and capability building. Originality/value The authors offer insights into the behavioural mechanism through which New Zealand reporting entities interpret and respond to the mandatory assurance of climate reporting.