Risk Exposure and Institutional Pressure: Drivers of Environmental Disclosure in Sub‐Saharan Africa

This study investigates how objective environmental and institutional pressures drive corporate environmental disclosure in sub‐Saharan Africa, independent of firms' self‐reported claims. Using 2390 firm‐year observations (2012–2021) from six countries, we proxy for carbon intensity and occupational safety risk using sector‐level benchmarks from the International Energy Agency, the International Labour Organisation and for regulatory stringency using the World Bank's policy index. Findings indicate that firms in high‐risk sectors disclose significantly more, and stronger national regulations further increase transparency, even under weak enforcement. These results refine legitimacy and institutional theories by demonstrating that disclosure responds to measurable risk exposure rather than merely symbolic reporting. We find that grounding analysis in observable risk exposures strengthens environmental accountability in emerging markets. The findings support risk‐proportionate disclosure mandates: stringent, verified reporting for high‐impact sectors and streamlined requirements for low‐risk firms, enhancing relevance without overburdening institutions.