A meta-analysis of the relationship between companies’ greenhouse gas emissions and financial performance

Major US electric utility climate pledges have the potential to collectively reduce power sector emissions by one-third

Well-to-wheel greenhouse gas emissions of electric versus combustion vehicles from 2018 to 2030 in the US

This paper investigates the effects that science-based targets (SBTs) have on corporate greenhouse gas (GHG) emissions. Using a difference-in-differences methodology, we assess whether companies that commit to a net zero goal show a decrease in GHG emissions compared to similar companies that declare such goals later. Our results provide limited evidence that organizations with SBT reduce emissions, particularly for Scope 1 and Scope 2 emissions, as the findings lack strong statistical significance. We also examine whether the pace of emission reductions increases as companies approach their target year. Our results indicate that efforts to reduce emissions increase before the announcement, but may stabilize thereafter. These results highlight the challenges of accurately assessing the tangible impact of voluntary corporate commitments on climate goals and underscore the need for comprehensive and clear reporting to prevent misleading claims and promote confidence in climate finance.

Mitigating Curtailment and Carbon Emissions through Load Migration between Data Centers

Because of climate change issues, greenhouse gas (GHG) emissions have been emerging as an important research topic in recent years. This study examines the role of corporate governance in reducing GHG emissions by focusing on board independence. We use the industry fixed effect panel regression model to analyze data from 156 listed South Korean firms during the period from 2011 to 2019. Our results suggest that board independence is related positively with the reduction in GHG emissions. In addition, our evidence shows that firms with higher levels of GHG emissions have better financial performance, but board independence weakens the relation. Our findings imply that an independent board tends to focus on balancing the firm’s financial versus environmental performance. This quantitative study contributes to our understanding of the effects of corporate effects on firms’ GHG emissions and their financial consequences. The findings have implications for corporate managers and policymakers with respect to choosing corporate governance structures that reduce GHG emissions effectively.

Energy-related activities are a major contributor of greenhouse gas (GHG) emissions. A growing body of knowledge clearly depicts the links between human activities and climate change. Over the last century the burning of fossil fuels such as coal and oil and other human activities has released carbon dioxide (CO2) emissions and other heat-trapping GHG emissions into the atmosphere and thus increased the concentration of atmospheric CO2 emissions. The main human activities that emit CO2 emissions are (1) the combustion of fossil fuels to generate electricity, accounting for about 37% of total U.S. CO2 emissions and 31% of total U.S. GHG emissions in 2013, (2) the combustion of fossil fuels such as gasoline and diesel to transport people and goods, accounting for about 31% of total U.S. CO2 emissions and 26% of total U.S. GHG emissions in 2013, and (3) industrial processes such as the production and consumption of minerals and chemicals, accounting for about 15% of total U.S. CO2 emissions and 12% of total ...

BackgroundThe typical Western diet is associated with high levels of greenhouse gas (GHG) emissions and with obesity and other diet-related diseases. This study aims to determine the impact of adjustments to the current diet at specific moments of food consumption, to lower GHG emissions and improve diet quality.MethodsFood consumption in the Netherlands was assessed by two non-consecutive 24-h recalls for adults aged 19–69 years (n = 2102). GHG emission of food consumption was evaluated with the use of life cycle assessments. The population was stratified by gender and according to tertiles of dietary GHG emission. Scenarios were developed to lower GHG emissions of people in the highest tertile of dietary GHG emission; 1) reducing red and processed meat consumed during dinner by 50% and 75%, 2) replacing 50% and 100% of alcoholic and soft drinks (including fruit and vegetable juice and mineral water) by tap water, 3) replacing cheese consumed in between meals by plant-based alternatives and 4) two combinations of these scenarios. Effects on GHG emission as well as nutrient content of the diet were assessed.ResultsThe mean habitual daily dietary GHG emission in the highest tertile of dietary GHG emission was 6.7 kg CO2-equivalents for men and 5.1 kg CO2-equivalents for women. The scenarios with reduced meat consumption and/or replacement of all alcoholic and soft drinks were most successful in reducing dietary GHG emissions (ranging from − 15% to − 34%) and also reduced saturated fatty acid intake and/or sugar intake. Both types of scenarios lead to reduced energy and iron intakes. Protein intake remained adequate.ConclusionsReducing the consumption of red and processed meat during dinner and of soft and alcoholic drinks throughout the day leads to significantly lower dietary GHG emissions of people in the Netherlands in the highest tertile of dietary GHG emissions, while also having health benefits. For subgroups of the population not meeting energy or iron requirements as a result of these dietary changes, low GHG emission and nutritious replacement foods might be needed in order to meet energy and iron requirements.

Rivers play an important role in greenhouse gas emissions. Over the past decade, because of global urbanization trends, rapid land use changes have led to changes in river ecosystems that have had a stimulating effect on the greenhouse gas production and emissions. Presently, there is an urgent need for assessments of the greenhouse gas concentrations and emissions in watersheds. Therefore, this study was designed to evaluate river-based greenhouse gas emissions and their spatial-temporal features as well as possible impact factors in a rapidly urbanizing area. The specific objectives were to investigate how river greenhouse gas concentrations and emission fluxes are responding to urbanization in the Liangtan River, which is not only the largest sub-basin but also the most polluted one in Chongqing City. The thin layer diffusion model method was used to monitor year-round concentrations of pCO2, CH4, and N2O in September and December 2014, and March and June 2015. The pCO2 range was (23.38±34.89)-(1395.33±55.45) Pa, and the concentration ranges of CH4 and N2O were (65.09±28.09)-(6021.36±94.36) nmol·L-1 and (29.47±5.16)-(510.28±18.34) nmol·L-1, respectively. The emission fluxes of CO2, CH4, and N2O, which were calculated based on the method of wind speed model estimations, were -6.1-786.9, 0.31-27.62, and 0.06-1.08 mmol·(m2·d)-1, respectively. Moreover, the CO2 and CH4 emissions displayed significant spatial differences, and these were roughly consistent with the pollution load gradient. The greenhouse gas concentrations and fluxes of trunk streams increased and then decreased from upstream to downstream, and the highest value was detected at the middle reaches where the urbanization rate is higher than in other areas and the river is seriously polluted. As for branches, the greenhouse gas concentrations and fluxes increased significantly from the upstream agricultural areas to the downstream urban areas. The CO2 fluxes followed a seasonal pattern, with the highest CO2 emission values observed in autumn, then successively winter, summer, and spring. The CH4 fluxes were the highest in spring and the lowest in summer, while N2O flux seasonal patterns were not significant. Because of the high carbon and nitrogen loads in the basin, the CO2 products and emissions were not restricted by biogenic elements, but levels were found to be related to important biological metabolic factors such as the water temperature, pH, DO, and chlorophyll a. The carbon, nitrogen, and phosphorus content of the water combined with sewage input influenced the CH4 products and emissions. Meanwhile, N2O production and emissions were mainly found to be driven by urban sewage discharge with high N2O concentrations. Rapid urbanization accelerated greenhouse gas emissions from the urban rivers, so that in the urban reaches, CO2/CH4 fluxes were twice those of the non-urban reaches, and all over the basin N2O fluxes were at a high level. These findings illustrate how river basin urbanization can change aquatic environments and aggravate allochthonous pollution inputs such as carbon, nitrogen, and phosphorus, which in turn can dramatically stimulate river-based greenhouse gas production and emissions; meanwhile, spatial and temporal differences in greenhouse gas emissions in rivers can lead to the formation of emission hotspots.

Taking Stock of Strategies on Climate Change and the Way Forward: A Strategic Climate Change Framework for Australia

This study sought to examine the relationship between Environmental, Social, and Corporate Governance (ESG) performance and greenhouse gas (GHG) emission performance. Using a sample of Latin American companies, we analyzed the influence of ESG performance on GHG emission performance through both the overall ESG score and the individual scores attributed to the three ESG dimensions. ESG practices are complex, involving a broad group of stakeholders, each with different interpretations of their impact on organizations and society. Consequently, ESG reports include a variety of indicators and themes. Despite the growing recognition of ESG practices as key indicators of sustainable performance, a gap remains in Latin American studies regarding a more specific examination of the relationship between these criteria and corporate GHG emissions. These findings are relevant not only to the academic community but also to policymakers, regulators and business leaders seeking to address urgent climate challenges and promote sustainable practices. Research on this issue can help these agents better understand and assess future opportunities and risks related to ESG practices, evaluate efforts and results in GHG mitigation, allocate capital resources strategically, enhance legitimacy, and gain stakeholder support. Companies adopting sustainable practices have the potential to create positive impacts on employment and on local communities, generating significant social and economic benefits for their regions. In addition, firms in areas with higher ESG scores and better GHG mitigation performance may gain a competitive advantage, attracting environmentally conscious investors and consumers. The robust findings of this research are attributed to the efficacy of the hierarchical econometric model, which captures variations across multiple levels. These findings confirm the positive relationship between higher ESG scores and improved GHG emission performance. They also demonstrate a predominance of corporate-related characteristics in sustainability performance and emissions control, with national and temporal variations playing smaller roles. These results contribute to academic knowledge and suggest practical implications for addressing challenges associated with climate change, providing insights that can guide public policies and corporate strategies.

Governments worldwide have implemented various strategies to reduce carbon emissions, with policies targeting high-emission industries such as energy, transportation, and manufacturing. However, developing Southeast Asian countries, including Malaysia, face challenges in balancing economic growth with emission reduction efforts due to financial constraints. Despite these challenges, Malaysia has made notable progress through its National Policy on Climate Change, pledging to reduce carbon intensity by 45% by 2030. In response to growing stakeholder demands for sustainability, companies are increasingly adopting sustainable practices to improve their environmental performance, often measured by Carbon Emission Intensity (CEI). CEI is a crucial indicator that offers a relative measure of environmental impact, considering a company’s economic output. The focus on Environmental, Social, and Governance (ESG) criteria has heightened the importance of CEI, particularly as companies with lower CEIs are viewed more favourably by investors. However, the relationship between carbon reduction efforts and financial performance remains inconclusive. This study examines the impact of carbon reduction efforts on the financial performance of Malaysian companies from 2019 to 2023. Using two widely recognized financial performance measures, Return on Assets (ROA) and Tobin’s Q, the study investigates the influence of Greenhouse Gas (GHG) emissions and Carbon Disclosure Project (CDP) participation on these metrics. The study utilizes panel data analysis on 1087 listed companies and applies multiple regression analysis using the STATA software package. The findings reveal a positive correlation between GHG emissions and ROA and Tobin’s Q, suggesting that companies not actively reducing emissions may still experience short-term financial gains. Conversely, CDP participation negatively impacts both financial indicators, likely due to the increased compliance costs associated with sustainability initiatives. The results underscore the need for a balanced approach that aligns environmental responsibilities with financial performance as Malaysia transitions to a low-carbon economy.

BackgroundPolicies to mitigate climate change by reducing greenhouse gas (GHG) emissions can yield public health benefits by also reducing emissions of hazardous co-pollutants, such as air toxics and particulate matter. Socioeconomically disadvantaged communities are typically disproportionately exposed to air pollutants, and therefore climate policy could also potentially reduce these environmental inequities. We sought to explore potential social disparities in GHG and co-pollutant emissions under an existing carbon trading program—the dominant approach to GHG regulation in the US and globally.Methods and findingsWe examined the relationship between multiple measures of neighborhood disadvantage and the location of GHG and co-pollutant emissions from facilities regulated under California’s cap-and-trade program—the world’s fourth largest operational carbon trading program. We examined temporal patterns in annual average emissions of GHGs, particulate matter (PM2.5), nitrogen oxides, sulfur oxides, volatile organic compounds, and air toxics before (January 1, 2011–December 31, 2012) and after (January 1, 2013–December 31, 2015) the initiation of carbon trading. We found that facilities regulated under California’s cap-and-trade program are disproportionately located in economically disadvantaged neighborhoods with higher proportions of residents of color, and that the quantities of co-pollutant emissions from these facilities were correlated with GHG emissions through time. Moreover, the majority (52%) of regulated facilities reported higher annual average local (in-state) GHG emissions since the initiation of trading. Neighborhoods that experienced increases in annual average GHG and co-pollutant emissions from regulated facilities nearby after trading began had higher proportions of people of color and poor, less educated, and linguistically isolated residents, compared to neighborhoods that experienced decreases in GHGs. These study results reflect preliminary emissions and social equity patterns of the first 3 years of California’s cap-and-trade program for which data are available. Due to data limitations, this analysis did not assess the emissions and equity implications of GHG reductions from transportation-related emission sources. Future emission patterns may shift, due to changes in industrial production decisions and policy initiatives that further incentivize local GHG and co-pollutant reductions in disadvantaged communities.ConclusionsTo our knowledge, this is the first study to examine social disparities in GHG and co-pollutant emissions under an existing carbon trading program. Our results indicate that, thus far, California’s cap-and-trade program has not yielded improvements in environmental equity with respect to health-damaging co-pollutant emissions. This could change, however, as the cap on GHG emissions is gradually lowered in the future. The incorporation of additional policy and regulatory elements that incentivize more local emission reductions in disadvantaged communities could enhance the local air quality and environmental equity benefits of California’s climate change mitigation efforts.

PurposeThis paper aims to investigate the impact of greenhouse gas (GHG) emissions and their components on the firm performance (FP) of select Indian companies.Design/methodology/approachThe sample is 100 large Indian firms from 2019–20 to 2021–22. Panel data and quantile regression models are employed to examine the issues.FindingsThere is a negative relationship between GHG emissions and financial performance. Further, this relationship is heterogeneous at different levels of financial performance. However, environmental certification fails to moderate the relationship.Research limitations/implicationsThe study focuses on the top 100 Indian listed companies over three years.Practical implicationsThe results highlight the need for management to reduce GHG emissions to improve the financial performance of the firms. Regulators and policymakers may develop guidelines for implementing environmental certification in India.Social implicationsThe study reveals the existence of stringent environmental regulations for limiting GHG emissions.Originality/valueThis study in India explores the moderating impact of environmental certification on the GHG emissions–FP relationship and investigates the influence of GHG emissions at different locations of the distribution of firm performance by using quantile regression.

BackgroundSocietal pressures exist to reduce greenhouse gas (GHG) emissions from farm animals, especially in beef cattle. Both total GHG and GHG emissions per unit of product decrease as productivity increases. Limitations of previous studies on GHG emissions are that they generally describe feed intake inadequately, assess the consequences of selection on particular traits only, or examine consequences for only part of the production chain. Here, we examine GHG emissions for the whole production chain, with the estimated cost of carbon included as an extra cost on traits in the breeding objective of the production system.MethodsWe examined an example beef production system where economic merit was measured from weaning to slaughter. The estimated cost of the carbon dioxide equivalent (CO2-e) associated with feed intake change is included in the economic values calculated for the breeding objective traits and comes in addition to the cost of the feed associated with trait change. GHG emission effects on the production system are accumulated over the breeding objective traits, and the reduction in GHG emissions is evaluated, for different carbon prices, both for the individual animal and the production system.ResultsMultiple-trait selection in beef cattle can reduce total GHG and GHG emissions per unit of product while increasing economic performance if the cost of feed in the breeding objective is high. When carbon price was $10, $20, $30 and $40/ton CO2-e, selection decreased total GHG emissions by 1.1, 1.6, 2.1 and 2.6% per generation, respectively. When the cost of feed for the breeding objective was low, selection reduced total GHG emissions only if carbon price was high (~ $80/ton CO2-e). Ignoring the costs of GHG emissions when feed cost was low substantially increased emissions (e.g. 4.4% per generation or ~ 8.8% in 10 years).ConclusionsThe ability to reduce GHG emissions in beef cattle depends on the cost of feed in the breeding objective of the production system. Multiple-trait selection will reduce emissions, while improving economic performance, if the cost of feed in the breeding objective is high. If it is low, greater growth will be favoured, leading to an increase in GHG emissions that may be undesirable.

Executive Summary: The California Climate Action Registry, which was initially established in 2000 and began operation in Fall 2002, is a voluntary registry for recording annual greenhouse gas (GHG) emissions. The purpose of the Registry is to assist California businesses and organizations in their efforts to inventory and document emissions in order to establish a baseline and to document early actions to increase energy efficiency and decrease GHG emissions. The State of California has committed to use its ''best efforts'' to ensure that entities that establish GHG emissions baselines and register their emissions will receive ''appropriate consideration under any future international, federal, or state regulatory scheme relating to greenhouse gas emissions.'' Reporting of GHG emissions involves documentation of both ''direct'' emissions from sources that are under the entity's control and indirect emissions controlled by others. Electricity generated by an off-site power source is consider ed to be an indirect GHG emission and is required to be included in the entity's report. Registry participants include businesses, non-profit organizations, municipalities, state agencies, and other entities. Participants are required to register the GHG emissions of all operations in California, and are encouraged to report nationwide. For the first three years of participation, the Registry only requires the reporting of carbon dioxide (CO2) emissions, although participants are encouraged to report the remaining five Kyoto Protocol GHGs (CH4, N2O, HFCs, PFCs, and SF6). After three years, reporting of all six Kyoto GHG emissions is required. The enabling legislation for the Registry (SB 527) requires total GHG emissions to be registered and requires reporting of ''industry-specific metrics'' once such metrics have been adopted by the Registry. The Ernest Orlando Lawrence Berkeley National Laboratory (Berkeley Lab) was asked to provide technical assistance to the California Energy Commission (Energy Commission) related to the Registry in three areas: (1) assessing the availability and usefulness of industry-specific metrics, (2) evaluating various methods for establishing baselines for calculating GHG emissions reductions related to specific actions taken by Registry participants, and (3) establishing methods for calculating electricity CO2 emission factors. The third area of research was completed in 2002 and is documented in Estimating Carbon Dioxide Emissions Factors for the California Electric Power Sector (Marnay et al., 2002). This report documents our findings related to the first areas of research. For the first area of research, the overall objective was to evaluate the metrics, such as emissions per economic unit or emissions per unit of production that can be used to report GHG emissions trends for potential Registry participants. This research began with an effort to identify methodologies, benchmarking programs, inventories, protocols, and registries that u se industry-specific metrics to track trends in energy use or GHG emissions in order to determine what types of metrics have already been developed. The next step in developing industry-specific metrics was to assess the availability of data needed to determine metric development priorities. Berkeley Lab also determined the relative importance of different potential Registry participant categories in order to asses s the availability of sectoral or industry-specific metrics and then identified industry-specific metrics in use around the world. While a plethora of metrics was identified, no one metric that adequately tracks trends in GHG emissions while maintaining confidentiality of data was identified. As a result of this review, Berkeley Lab recommends the development of a GHG intensity index as a new metric for reporting and tracking GHG emissions trends.Such an index could provide an industry-specific metric for reporting and tracking GHG emissions trends to accurately reflect year to year changes while protecting proprietary data. This GHG intensity index changes while protecting proprietary data. This GHG intensity index would provide Registry participants with a means for demonstrating improvements in their energy and GHG emissions per unit of production without divulging specific values. For the second research area, Berkeley Lab evaluated various methods used to calculate baselines for documentation of energy consumption or GHG emissions reductions, noting those that use industry-specific metrics. Accounting for actions to reduce GHGs can be done on a project-by-project basis or on an entity basis. Establishing project-related baselines for mitigation efforts has been widely discussed in the context of two of the so-called ''flexible mechanisms'' of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (Kyoto Protocol) Joint Implementation (JI) and the Clean Development Mechanism (CDM).