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Purpose This study aims to examine the relationship between six specific Audit Committee (AC) features (size, independence, gender diversity, financial expertise, meeting frequency and tenure) and the degree of Environmental, Social and Governance (ESG) decoupling. Design/methodology/approach On a sample of 3,465 publicly listed large firms worldwide from 2009 to 2023 (13,488 firm-year observations) a random-effects Tobit regression for panel data and the generalized method of moments (GMM) were estimated. Findings The results show that ACs with greater gender diversity and financial expertise are more effective at improving the ESG reporting reliability by reducing ESG decoupling. However, AC resources and diligence, as measured by AC size, tenure and meeting frequency, do not significantly impact ESG decoupling. Research limitations/implications The findings suggest that the AC configuration enhances the quality and integrity of ESG information by reducing the divergence between symbolic disclosures and substantive actions. Practical implications The study provides actionable insights for strengthening ESG accountability frameworks and reducing ESG decoupling in corporate reporting. Originality/value This is the first study to systematically examine the relationship between AC characteristics and ESG decoupling.
Cepêda et al. (Wed,) studied this question.