Description
The role of corporations in advancing social equity and environmental protection has become a focal point of contemporary discourse. These entities contribute to the creation of credibility, participate in political system controls, and collaborate with governments to establish internationally recognized norms and standards for environmental, financial, and accounting performance. The increasing societal pressure, particularly from financial institutions demanding greater transparency regarding environmental and climate risk assessments, has spurred the rise of transnational climate and environmental governance initiatives (TGIs). However, a critical challenge persists, determining legitimacy and accountability within these initiatives - specifically, who should be accountable to whom. Legitimacy and accountability are essential categories within governance architecture, representing potential points of contention within the transnational regime complex.
This study proposes to examine the private sector's networked climate and environmental governance through an agency-focused perspective. Key components such as transparency, monitoring mechanisms, and information sharing will be scrutinized. The aim is to highlight the importance of legitimacy and accountability in building trust and support among various stakeholders. The objective is to contribute to the global climate and environmental governance literature by evaluating these two essential components of profit-driven companies' climate and environmental governance mechanisms.
