Are Family Firms Greener? Evidence from Environmental Disclosure and Performance

Do family businesses differ from non-family businesses in terms of environmental performance? Although family firms are often expected to be greener due to their long-term orientation and reputational concerns, the existing empirical evidence remains inconclusive and, at times, contradictory. In this literature review, we argue that differences in data sources and measurement drive these inconsistencies. Studies relying on self-reported disclosures tend to report neutral or negative results, whereas those using objective indicators-such as carbon emissions or green innovation-consistently show that family firms exhibit superior environmental performance. We attribute this divergence to the well-established reluctance of family firms to engage in extensive voluntary disclosure. Overall, our evidence suggests that family firms promise less but deliver more in terms of environmental performance.