EFFECT OF CARBON FOOTPRINT REPORTING ON BRAND TRUST OF MTN NIGERIA

The escalating global awareness of climate change has positioned carbon footprint reporting (CFR) at the center of corporate accountability and consumer-driven evaluations of brand integrity. This study examined the effect of carbon footprint reporting operationalized through the dimensions of environmental transparency, disclosure credibility, and perceived corporate social responsibility (PCSR) on brand trust among MTN Nigeria subscribers in Abuja, Federal Capital Territory. The study was anchored in the context of MTN’s recent transition toward advanced sustainability disclosures, including its early adoption of the IFRS S1 and S2 standards and its reported 11% reduction in Scope 1 and Scope 2 emissions (MTN Nigeria, 2024). Using a quantitative cross-sectional research design, primary data were collected from active MTN subscribers through a structured questionnaire. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results revealed that only perceived corporate social responsibility (PCSR) exerted a statistically significant positive effect on brand trust (β = 0.485, t = 4.164, p = 0.000), leading to the rejection of the third null hypothesis. In contrast, environmental transparency (β = 0.236, p = 0.113) and disclosure credibility (β = 0.226, p = 0.126) showed positive but statistically non-significant relationships with brand trust; therefore, their respective null hypotheses were accepted. The structural model demonstrated substantial explanatory power, accounting for 77.2% of the variance in brand trust (R² = 0.772), with high predictive relevance (Q² = 0.722). These findings suggest that Nigerian consumers currently place greater emphasis on the perceived sincerity and tangible societal value of MTN’s environmental actions such as the launch of eco-friendly SIM cards than on the technical depth or credibility of carbon disclosure data alone. The study recommends that MTN prioritize visible and authentic environmental initiatives alongside community-impact programs to strengthen brand trust. Additionally, regulatory bodies are encouraged to introduce mandatory independent assurance of carbon disclosures and implement public education campaigns to enhance consumer sensitivity to technical transparency and disclosure credibility over time.