The majority of data and knowledge on the how Carbon Disclosure (CD) impacts a firm's real Carbon Performance (CP) has not increased in parallel with the amount of carbon disclosure. Therefore, this study applies the 'outside-in' management viewpoint to analyse the correlation between carbon performance and the carbon disclosure in china. The Carbon Disclosure Project (CDP) platform panel data study of china companies and their carbon declarations for the years 2017 to 2021 shows that increased CP in order to reduce greenhouse was associated with greater transparency around carbon expenditure. The link between CD and CP was shown to be very strong in studies of carbon-intensive enterprises. Additionally, the relationship of interest was minimal during the financial crisis; nevertheless, throughout the years, better carbon reporting was linked to fewer emissions. This research supports the idea that corporations are motivated to reduce their emissions as a result of being made aware of their carbon footprints. For business stakeholders and government authorities who are worried about the grade and effects of CD, our results are helpful.