“The research, published in Journal of Applied Accounting Research, examined the financial risks associated with climate change regulations, such as the European Green Deal and the EU Emissions Trading System. It found that as companies face increased costs in transitioning to low-carbon operations, they may engage in earnings manipulation to present a stronger financial position.”

[COMMENTARY] This finding is unsurprising. Leaders of high greenhouse gas emitting companies are usually unfriendly to climate regulations. Hence, perhaps more likely to oppose them in various ways — including manipulating finances to give a better impression of how their companies are performing.
Companies with high greenhouse gas emissions more likely to manipulate finances, by University of Portsmouth, March 18, Phys.org, USA.