This paper examines whether the different corporate governance structures of conventional banks (CBs) and Islamic banks (IBs) have varying effects on their respective climate‐related disclosure (CRD). Employing a unique dataset of CBs and IBs' CRD and corporate governance structures for the period of 2016–2019, we found that their respective corporate governance structures did indeed affect their CRD in different ways. Our findings suggest that CBs disclose more climate‐related information than IBs because IBs focus on Sharia compliance which does not emphasise the protection of the environment, while CBs may be more responsive to shareholders' and stakeholders' demands on climate and environment. These effects were stronger with the quality of governance, that is, CBs disclose more climate‐related information with the governance quality, while IBs disclose even less when their governance quality increases. The findings of this study have important implications for climate change, especially the Paris Accord and The 26th Meeting of the Conference of Parties (COP26). There are also policy implications for sustainable financial markets and the financial services sector.

This study explores the intricate interplay between female representation in national parliaments and government fiscal policies, with a specific focus on fossil fuel subsidies, environmental taxes, and expenditure, in the context of climate change mitigation. Using a sample of 160 countries over the period from 1997 to 2022, this empirical analysis demonstrates the positive relationship between the presence of female parliamentarians and environmentally friendly fiscal measures. While women in the parliaments reduce the amount of the subsidies granted to fossil fuels, they levy environmental taxes and increase environmental spending. The findings illustrate the pivotal role of female parliamentarians in advocating for environmental legislation and transcending political ideologies and national boundaries. Addressing potential concerns of endogeneity by employing additional control variables, omitted variables, and instrumental variable analyses, this study emphasises the robustness of the results. Notably, this study finds that a critical mass of at least 30% female representation in parliaments enhances the efficacy of environmental policy outcomes. This research highlights the multifaceted impact of gender diversity on fiscal policies related to environmental protection, offering valuable insights for policymakers and organisations committed to sustainability and gender equality.

This paper investigates whether climate‐related disclosure (CRD) affects the financial performance of conventional banks (CBs) and Islamic banks (IBs) differently. Using a unique hand‐collected dataset on CRD for 591 banks (422 CBs and 169 IBs) from 24 countries over a 4‐year period, we examine how the relationship between CRD and financial performance varies across bank types. The results reveal a contrasting effect of CRD on the financial performance of the two bank types. Specifically, CBs experience a significant improvement in financial performance as the extent of their environmental and CRDs increases, whereas IBs exhibit a significantly negative relationship between CRD and financial performance. We attribute this disparity to CBs' comparative advantages, including greater market power, higher cost efficiency and more flexible governance structures, which enable them to derive greater benefits from CRD practices than IBs. This study contributes to the literature on nonfinancial disclosure and bank performance by highlighting the heterogeneous effects of CRD across banking models. The findings also have important policy implications for addressing climate change and advancing sustainable finance initiatives, particularly in the context of the Paris Agreement and COP26. More broadly, the study underscores the critical role of the banking sector in facilitating the transition to a more sustainable economy.