The rise in carbon disclosure has yet to be matched by evidence and understanding of how carbon disclosure affects a firm’s actual carbon performance? Therefore, this study examines the relationship between voluntary carbon disclosure and the carbon performance of the UK’s listed firms by applying the ‘outside-in’ management perspective. Panel data analysis of UK FTSE350 firms and their carbon disclosures for the period 2007–2015, made on the Carbon Disclosure Project (CDP) platform, indicates that enhanced carbon disclosure was associated with improved carbon performance in terms of greenhouse gas emissions. Additional analysis found that the carbon disclosure-carbon performance relationship is more pronounced in carbon-intensive industries. Moreover, during the financial crisis period, the relationship of interest is insignificant, however, during the recovery years, improved carbon reporting was associated with lower emissions. This study confirms that carbon disclosure motivates companies and creates a momentum effect for the subsequent reduction in their emissions. Our findings are useful for corporate stakeholders and governmental policymakers who are concerned about the quality and consequences of carbon disclosure.