How Different and How Alike? Cluster Analysis Applied to Greenhouse Gas Emissions Inventory Data from Companies Listed on the Brazilian Stock Exchange

Abstract

Purpose: The purpose of this investigation is to understand how companies listed on the B3 that disclose emissions inventories in Brazil are similar or different, based on quantitative variables related to GHG (Greenhouse Gas) emissions intensity, company size, net operating revenue, potential for investments in new technologies, communication, and socio environmental responsibility. Theoretical framework: Theoretical framework addresses corporate social responsibility (RSE) and the economic foundations of Regulation. Method/design/approach: We used a multivariate cluster analysis technique on a sample of 31 companies listed on the Brazilian stock exchange that disclosed emissions inventories over the period 2012 to 2019. Results and conclusion: The results showed that companies like Petrobras (cluster 4), as well as JBS, Vale, Ultrapar and CBD (cluster 3), besides emitting more GHGs, are also larger companies, with higher revenues, committed to communication and socio-environmental responsibility. In addition, they incentivize their executives through higher monetary incentives. Because they have such distinct characteristics from other companies, these companies or sectors could be driven by incentives other than traditional regulation. Research implications: The results suggest that large companies have, in some cases, anticipated regulation as they have incorporated environmental programs within their long-term strategies. In contrast, increased regulation may put pressure on smaller companies to adapt. Originality/value: Our findings contribute to the literature by highlighting the characteristics of these companies that voluntarily disclose emissions inventories in Brazil. Furthermore, we indicate how they are similar or different according to financial, environmental, and social performance criteria.