Abstract
This study investigates the impact of the board of directors’ effectiveness on greenhouse gas (GHG) disclosure among listed firms in Saudi Arabia, a resource-rich emerging economy transitioning towards sustainability under Vision 2030 and the 2060 net-zero pledge. Guided by stakeholder and legitimacy theories, board effectiveness was measured as a composite index comprising independence, size, gender diversity, and meeting frequency. Using a purposive sample of 150 high-impact firms across 750 firm-year observations (2020–2024), GHG disclosure was assessed through a novel, context-specific disclosure index developed via content analysis of publicly available reports, capturing both breadth and quality. The random-effects regression results indicate that board effectiveness (BOE) has a strong and positive effect on GHG disclosure (β = 0.0630, t = 8.82, p < 0.01), confirming that well-functioning boards drive climate transparency. This suggests that firms with more independent, diverse, and active boards are better positioned to oversee climate-related strategies, ensure the credibility of environmental reporting, and respond effectively to growing stakeholder and regulatory demands for sustainability accountability. The findings further underscore the pivotal role of robust governance in enhancing climate-related transparency, delivering actionable insights for policymakers crafting regulations, corporate executives shaping sustainable strategies, and researchers exploring governance impacts. The limitations include the study’s sector-specific focus, reliance on secondary disclosures, and temporal scope, suggesting future research avenues in cross-country comparisons, longitudinal analysis, and governance climate strategy integration.