Environmental Performance Of Companies Research Articles

Supply chain digitalization and corporate ESG performance: Evidence from supply chain innovation and application pilot policy

The increasing environmental unpredictability has amplified the strategic significance of contemporary digital supply networks. Gaining a comprehensive understanding of the mechanisms and effects of supply chains enabled by digital technology is essential for implementing reforms that improve the economy's supply side. This study utilizes the Difference-in-Differences (DID) approach to investigate the influence of supply chain digitization on company Environmental, Social, and Governance (ESG) performance, using data from 2011 to 2020. This study demonstrates that supply chain digitalization can significantly enhance corporate ESG performance. The stimulating impacts are mainly attained through enhancing corporate governance, total factor productivity, and mitigating financial limitations.

Investigating the Relationship Between ESG Performance and Market Capitalization

This study investigates the potential connection between a company's environmental, social, and governance (ESG) performance and its market capitalization within the Indian context. Utilizing a scatter plot analysis of a large dataset encompassing 693 companies, the research revealed a weak negative trend between ESG combined score and market capitalization. However, the significant dispersion of data points across the plot suggested a more complex relationship. The analysis acknowledged the limitations of scatter plots, particularly their inability to account for the influence of other factors on market valuation. Factors such as company size, financial performance, industry affiliation, and economic conditions might be playing a significant role. Additionally, the observed data dispersion hinted at potential market mispricing, where companies with strong ESG practices might be undervalued by investors, and industry-specific effects, where the impact of ESG on market value could be stronger in certain sectors. To gain a deeper understanding of this intricate relationship, future research directions were identified. These included analysing correlations between individual ESG subcomponents and market capitalization to identify specific areas with a stronger association. Segmenting the data by industry could reveal industry-specific effects. Furthermore, employing regression analysis can offer a more robust understanding of the relative influence of various factors on market valuation. Finally, a long-term perspective might be necessary to capture potential delayed effects of ESG practices on market value. By addressing these limitations and exploring these avenues, future research can contribute to a more comprehensive understanding of the interplay between ESG performance and market valuation in the Indian market.

Research tools for studying modern trends in the implementation of ESG practices in Russian companies

Purpose: is to test the research tools for studying modern trends in the implementation of ESG practices and their effectiveness in Russian companies. Methods: this article examines the applicability of the research tools for analyzing the activities of organizations in the direction of the ESG agenda. We analyzed such tools as comparative analysis of fi nancing ESG projects, content analysis of report texts, regression analysis of the relationship between the ESG ratings and the fi nancial performance of the company. A comparative analysis of methods was carried out based on the results of appropriation of instruments. Results: the main result of the reporting analysis is the identifi cation of a trend towards reducing disclosure of information on the financing of ESG projects. We can identify main areas of investment in requests from external and internal stakeholders based on available financing information. The conclusion about the increase in mentions of social projects and initiatives in the fi eld of environmental protection based on a content analysis results. We also identifi ed the highest priority areas for each of the ESG components. The main priorities are: the social agenda – "employee welfare"; responsible attitude to the environment – "reduction of greenhouse gas emissions", "energy–efficient materials and technologies", "waste management" and "water consumption"; corporate governance – "observance of shareholders' rights". The hypothesis about the positive impact of ESG rating on company value confi rmed. There was a positive relationship between a company's environmental performance and value, as well as a negative relationship between value and social performance. Conclusions and Relevance: despite the challenges and sanctions restrictions, Russian companies continue to be active in the ESG field. For a more complete analysis of the ESG projects and their coverage in non-financial reporting, it is preferable to use a combination of research tools.

THE IMPACT OF COMPANY SIZE, PROFITABILITY, INDUSTRY TYPE, LEVERAGE, AND ENVIRONMENTAL PERFORMANCE ON CARBON EMISSION DISCLOSURE

The study aims to analyze the impact of company size, profitability, industry types, leverage, and environmental performance on carbon emission disclosure. The research population is all manufacturing company listed on the Indonesian Stock Exchange (IDX) during the period 2019-2022. Sampling method in this study uses purposive sampling techniques with specific criteria. The number of samples obtained amounted to 56 data. This type of research is quantitative research. This research data analysis method uses multiple regression analysis techniques. The data used in this study are secondary data derived from the annual reports and sustainability reports of the company contained on the website www.idx.co.id and the related company web. The research was processed using the SPSS 25 application. The result of this study show that profitability, industry types, and leverage have an impact on carbon emission disclosures, while company size and environmental performance have no impact on carbon emission disclosure

Environmental ethics and green practices in the manufacturing sector: The role of green innovation and environmental policy

AbstractNumerous studies have indicated that incorporating an environmental ethic (EE), green innovation (GI), and environmental policy (EnP) can enhance a company's sustainable performance, that is, environmental performance (EP) and economic performance (EcP) in the manufacturing industry. However, to encourage eco‐friendly production and processes, it is crucial to promote sustainable practices across different industries. Nevertheless, some researchers have overlooked the significance of these implementations. Integrating these practices into the manufacturing sector can be challenging. To address this issue, this study has developed an empirical model that assesses two pillars of sustainable performance in the Jordanian manufacturing industry. The study analyzes the direct correlation between a firm's EE, GI, and sustainable performance. It also examines whether GI plays a mediating role in the relationship between company EE and sustainable performance and if EnP moderates the relationship between GI and sustainable performance. The study collected data from 386 respondents belonging to various manufacturing industries in Jordan and analyzed it using SmartPLS. The research revealed that a manufacturing firm's EE is significantly boosted by GI, EP, and EcP. These findings suggest that companies with higher EE are more likely to innovate sustainably and perform better in terms of sustainability. In particular, the study found that GI plays a mediating role between a firm's EE and its sustainable performance. Furthermore, the impact of EnP on the relationship between GI and EP was mixed, showing a moderating effect on the former but not on EcP. The study provides valuable insights into the implementation of green practices in the manufacturing sector and discusses policy implications for manufacturers.

Role Environmental Performance on Effect Financial Performance to Carbon Emission Disclosure

Disclosure of carbon emissions has become a global issue amidst the increasing world climate. This issue becomes a tranding that can affect the company's performance supported by the company's environmental performance. This study aims to examine the role of environmental performance in the influence between the company's financial performance on the disclosure of carbon emissions. This research was conducted on Basic Industry and Chemical companies listed on the Indonesia Stock Exchange. The unit of analysis used in this study was 150 observation units. Data analysis uses multiple regression analysis. The results of the analysis show that first: financial performance consisting of liquidity, profitability, leverage, and sales growth has a direct effect on the disclosure of carbon emissions. However, the return on equity ratio has no effect on the disclosure of carbon emissions. Second, the results show that the presence of environmental performance can not maximally encourage the disclosure of carbon emissions. Where the company can improve environmental performance if the company has better financial performance. This is indicated by the value of the direct effect of environmental performance has no effect on the disclosure of carbon emissions. However, this research is limited to basic and chemical companies, so future research can expand to companies that have a direct impact on the environment.

The crowding-out effect of the environmental regulation on corporate sustainability

The analysis of the impact of China’s Environmental Protection Tax (EPT) Law on company environmental, social, and corporate governance (ESG) performance is crucial for a more comprehensive understanding of the EPT Law and to improve corporate practices. Using a difference-in-differences (DID) model with a research sample of 7,055 listed firms in China from 2012 to 2020, we found that the EPT Law significantly improved firms’ overall ESG performance. However, this improvement was mainly driven by significant increases in the environmental (E) score. In contrast, the social (S) score declined significantly after the implementation of the EPT Law, indicating a trade-off between environmental regulation and social responsibility. Further analysis also reveals that the increase in production costs, which led to a decrease in employment and wages, is responsible for the crowding-out of social responsibility. This study not only enhances our understanding of the impacts of environmental regulations on companies but also offers guidelines for policymakers to consider the negative externality of policies, which could serve as a “double-edged sword.”

Multiple shareholding institutional investors and green governance of heavy‐polluting industries

AbstractGreen governance in heavily polluting industries is crucial for achieving sustainable economic growth. By analyzing Chinese A‐share listed companies from these industries between of 2010 and 2021, we assess the influence of multiple shareholding institutional investors (MSII) on a company's environmental performance. We find that MSIIs can improve environmental performance, highlighting their positive role in green governance. Further analyses reveal that this green influence stems from three key effects: supervisory oversight by principal shareholders, managerial incentives, and knowledge transfer. Consistent with the risk‐averse hypothesis, our study also suggests that MSIIs could drive the green transformation of heavy‐polluting industries out of risk aversion.

Analyzing the Impact of Green Marketing Strategies on the Environmental Performance and market performance of Companies in the Consumer Goods Sector

This study explores the impact of green marketing strategies on the environmental and market performance of companies in the consumer goods sector, with a specific focus on Pakistan—a developing economy facing rapid urbanization and environmental challenges. Recognizing the growing consumer demand for sustainable practices, this research delves into how green marketing can serve as a vital tool for companies to align their business objectives with environmental responsibilities. Through a qualitative case study approach, involving semi-structured interviews with stakeholders and analysis of sustainability reports and consumer feedback, the study aims to uncover the effectiveness of green marketing strategies. These strategies encompass sustainable product development, eco-labeling, environmentally friendly packaging, and eco-centric promotional activities. Findings indicate that green marketing significantly contributes to improving a company's environmental performance, evidenced by carbon footprint reduction, waste management efficiency, and sustainable sourcing. Moreover, such strategies positively affect market performance, enhancing sales growth, brand loyalty, and consumer perception. Importantly, the study highlights the challenges of greenwashing and consumer skepticism, emphasizing the need for authenticity in green marketing efforts. Additionally, gender analysis revealed uniform responses across male and female participants regarding the recognition of sustainability efforts and the impacts of green marketing, suggesting a broad consensus on the value of green practices irrespective of gender. This research not only bridges the gap in literature by focusing on the dynamics of green marketing in a developing country but also provides practical insights for companies and policymakers aiming to navigate the sustainability landscape in the consumer goods sector. The study underscores the strategic importance of green marketing initiatives in driving sustainable business growth and environmental stewardship, offering a pathway towards a more sustainable future.

Towards a More Reliable ESG (Environmental, Social, and Governance) Assessment Framework: Lessons from the PRI Initiative

In recent years, green investments and ESG (Environmental, Social, and Governance) principles have gradually become the focus of the industry's attention. However, the future of ESG still has some uncertainties, and the diversity of ESG data and metrics has led to challenges in comparing ESG performance across companies, making it complex to determine the relevance and substantive ESG issues related to financial performance. This paper explores the evolution and challenges of ESG investments and proposes principles for ESG rating agencies to follow, originating from the PRI (Principles for Responsible Investment). This study recommends that rating agencies adopt a comprehensive assessment approach, considering a company's environmental, social, and governance performance and engaging with companies to obtain more comprehensive and reliable data. Additionally, rating agencies should maintain transparency, disclosing precise methods and data sources to enhance the credibility of ESG ratings. Most importantly, rating agencies must continuously improve their rating methodologies to reflect changes in the market and ESG practices, encouraging other rating agencies to adopt more consistent ESG assessment methods for a more sustainable investment practice and sustainable development in the financial industry.

The Effect of Company Competition, Company Size and Environmental Performance on Carbon Emissions Disclosure

This study aims to determine whether or not there is an effect of company competition, company size, and environmental performance on disclosure of carbon emissions. This research was conducted on energy sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period, totaling 237 companies obtained by purposive sampling. The method of analysis in this study is multiple regression analysis with IBM SPSS Statistics 26 software to test the variables of company competition, company size, and environmental performance on carbon emissions disclosure. The results of this study indicate that partially company competition have no effect on disclosure of carbon emissions. While company size and environmental performance affects the disclosure of carbon emissions. Simultaneously, company competition, company size, and environmental performance together affect the disclosure of carbon emissions

Pengaruh Corporate Environmental Performance dan Intellectual Capital terhadap Sustainability Reporting dengan Good Corporate Governance Sebagai Moderasi

The purpose of this study is to be able to react to that given by the company's environmental performance as well as intellectual capital to sustainability reporting with good corporate governance as moderation. The data used in this study comes from secondary data. Where the companies used in this study are companies that are categorized into the mining sector, other industries, consumer goods, infrastructure, utilities and transportation industries by the Indonesia Stock Exchange (IDX) during the 2017-2019 period. Sampling in this study using purposive sampling technique so that the number of companies used in this study were 42 companies. The data that has been collected is then tested using panel data regression analysis. The results obtained are based on data processing obtained by the company's environmental performance which has a significant positive effect on sustainability reporting, while intellectual capital does not have a significant positive effect on sustainability reporting. The research variables of good corporate governance do not moderate the influence of corporate environmental performance and intellectual capital on sustainability reporting.

Analysis Of The Influence Of Financial, Environmental Performance And Corporate Governance On Performance Of Corporate Social Responsibility Of Energy And Mineral Companies Listed In Indonesian Stock Exchange

The purpose of this study is to determine how company governance, financial performance, and environmental performance affect the disclosure of corporate social responsibility. With secondary data from all energy businesses that have released annual reports, this study employs quantitative methodologies. All companies in the energy sector listed on the Indonesian Stock Exchange comprise the population considered in this study. Purposive sampling was used as the technique for selecting the sample. The partial least squares (PLS) approach is the data analysis technique employed in this study. Microsoft Excel was utilized by researchers to do descriptive statistical computations. The evaluation of the PLS model, which consists of two models, the outer model and the inner model, comes next once descriptive statistics have been completed. Disclosure of corporate social responsibility is positively and significantly impacted by corporate governance using KP, DKI, and KA indices. This demonstrates that a company's corporate social responsibility disclosure is more widely disclosed the better its governance. Disclosure of corporate social responsibility is positively and significantly impacted by environmental performance as measured by the PROPER indicator. This demonstrates that greater corporate social responsibility disclosure corresponds with improved environmental performance. The relationship between financial performance as measured by NPM, ROA, and ROE and corporate social responsibility disclosure is nonexistent. This demonstrates that a company's level of corporate social responsibility disclosure is not always influenced by its financial performance.

Product category rules development as a reference for PROPER life cycle assessment reporting: recommendations

The Ministry of Environment and Forestry (MOEF) issued regulations regarding monitoring of company environmental performance (PROPER), which required companies to conduct LCA studies for their products to obtain a green or gold rating. The LCA report submitted in the PROPER program should refer to the specified guiding standards, namely Product Category Rules, which contain the necessary elements of product environmental footprint (PEF) for assessing environmental management performance evaluations to meet international standards and ensure acceptance by the international community. This study aims to evaluate and analyze industries that have received green and gold ratings in the 2022 PROPER program and whether their LCA arrangement refers to certain PCRs contained in the international program operators. MOEF and MOI (Ministry of Industry) will use the evaluation and analysis results as a suggestion to build PCR for priority industries. Seven industrial sectors already have PCR as the basis of the LCA study. Additionally, three product categories require establishing PCR as a criterion for LCA.

Modeling barriers to social responsibility accounting (SRA) and ranking its implementation strategies to support sustainable performance – a study in an emerging market

PurposeToday, with the increasing involvement of the environment and human beings business units, paying attention to fulfilling social responsibility obligations while making a profit has become increasingly necessary for achieving sustainable development goals. Attention to profit by organizations should not be without regard to their social and environmental performance. Social responsibility accounting (SRA) is an approach that can pay more attention to the social and environmental performance of companies, but it has many barriers. Therefore, the purpose of this study is to identify barriers to SRA implementation and provide strategies to overcome these barriers.Design/methodology/approachIn this study, the authors identify barriers to social responsibility accounting implementation and provide strategies to overcome these barriers. By literature review, 12 barriers and seven strategies were identified and approved using the opinions of six academic experts. Interpretive structural modeling (ISM) has been used to identify significant barriers and find textual relationships between them. The fuzzy technique for order performance by similarity to ideal solution (TOPSIS) method has been used to identify and rank strategies for overcoming these barriers. This study was undertaken in Iran (an emerging market). The data has been gathered from 18 experts selected using purposive sampling and included CEOs of the organization, senior accountants and active researchers well familiar with the field of social responsibility accounting.FindingsBased on the results of this study, the cultural differences barrier was introduced as the primary and underlying barrier of the social responsibility accounting barriers model. At the next level, barriers such as “lack of public awareness of the importance of social responsibility accounting, lack of social responsibility accounting implementation regulations and organization size” are significant barriers to social responsibility accounting implementation. Removing these barriers will help remove other barriers in this direction. In addition, the results of the TOPSIS method showed that “mandatory regulations, the introduction of guidelines and social responsibility accounting standards,” “regulatory developments and government incentive schemes to implement social responsibility accounting,” as well as “increasing public awareness of the benefits of social responsibility accounting” are some of the essential social responsibility accounting implementation strategies.Practical implicationsThe findings of the study have implications for both professional accounting bodies for developing the necessary standards and for policymakers for adopting policies that facilitate the implementation of social responsibility accounting to achieve sustainability.Social implicationsThis paper creates a new perspective on the practical implementation of social responsibility accounting, closely related to improving environmental performance and increasing social welfare through improving sustainability.Originality/valueExperts believe that the strategies mentioned above will be very effective and helpful in removing the barriers of the lower level of the model. To the best of the authors’ knowledge, for the first time, this study develops a model of social responsibility accounting barriers and ranks the most critical implementation strategies.

Breaking the ESG rating divergence: An open geospatial framework for environmental scores

Information about a company's environmental, social and governance (ESG) performance has become increasingly important in the decision-making process of financial institutions. The financial implications of environmental challenges (e.g. water stress), negative social impacts (e.g. health impacts in local communities) or poor corporate governance (e.g. breaching legislation) all continue to increase. Accordingly, there is a need for financial institutions to incorporate information on ESG risks, opportunities and impacts in decisions that relate to risk management, investments, credit, strategy, and reporting. ESG information is typically disseminated through ESG ratings, which combine the three constituents into a single rating, or ascribe them separate scores. The compilation of ESG ratings and the identification of appropriate data sources is an inherently complex process; as such, there is no single standard for data collection or reporting. This has led to a divergence in the underlying data sources used by different rating providers, as well as in the determination of factors that are deemed worthy of measurement in the first place. For example, when assessing a company's environmental impact, one rating provider may rely on company-provided data, while another may incorporate independent third-party assessments. Unfortunately, there is currently no clear mechanism for effectively resolving such disagreements to establish a standardised approach to ESG rating assessments. However, geospatial data and analyses offer several key advantages for ESG assessments, including consistency, the potential for enhanced accuracy, and the ability to identify and assess environmental impacts at a detailed physical asset level, in addition to evaluating the broader spatial context. By incorporating geospatial information (obtained through manually processing remotely sensed data, or by using existing products) rating methodologies can be improved, and disparities can be addressed more effectively. This would enable a more comprehensive understanding of the environmental considerations of ESG assessments, promoting a more informed and precise decision-making process. Within this context, a few institutions (e.g. the University of Oxford, the WWF, and a few others) are pioneering thought leadership around spatial finance, including the assessment of ESG issues utilising geospatial intelligence, but there are no consistent frameworks for incorporating geospatial data into ESG ratings and analysis. This paper explores the opportunity for such a geospatial environmental scoring framework, defining a variety of methods in which open data with broad geographic coverage could be incorporated into ESG analysis, generalisable to a range of assets and sectors. The proposed framework is organised into two categories: localised effects, which directly impact the immediate vicinity of an asset, and delocalised effects, which contribute to global climate change and atmospheric pollution. Sub-scores are defined within these categories, which capture both the localised effects on land use, biodiversity, soils, and hydrology, and the global impacts resulting from atmospheric emissions. The approaches for handling geospatial data to generate both these sub-scores and the final E-score are presented, including a test case, and the complete methodology is made available in open repositories.

Environmental management accounting model in the hotel industry

The impact of tourism industry activities can cause various environmental problems that are detrimental to various parties. This is a social burden, which must be taken seriously. Environmental Management Accounting is a concept that helps companies contain business impacts in the form of monetary units. The application of Environmental Management Accounting helps companies deal with environmental problems by recording all production activities to be reported in the company's environmental cost report. Although until now there is no standard that requires full environmental accounting disclosure. The research methodology uses case studies. This research aims to develop a model in the form of an accounting policy that contains the concept; emphasize relationship patterns and clarify environmental management accounting practices in the hotel industry. Data analysis was carried out using the Miles and Huberman model. The research results show that environmental management accounting is still considered necessary because it does not affect the business climate. In addition, the relationship between a company's environmental performance presented in the company's accountability report and its financial or economic performance is still doubtful.

Pengaruh Company Size dan Environmental Performance Terhadap Pengungkapan lingkungan

This Research aims to examine and prove the effect of Company Size and Environmental Performance on Environmental Disclosure by using a quantitative method. This research topic is very important to study in analyzing the extent to which mining companies fulfill their obligations to carry out Environmental Disclosure in accordance with OJK Regulation No. 51 of 2017. The sampling method uses purposive sampling with a total sample of 65 data from 13 Mining Companies Listed on the BEI for the 2017-2021 period. Multiple linear regression was used to analyze the data with the Eviews 12 software. The results of this study prove that mining companies listed on the BEI already have a responsibility for environmental disclosure which is driven by the large size of company assets owned and environmental performance. In addition, there is evidence that mining companies listed on the BEI have not fully reported environmental disclosure based on GRI standards. The company only reported 12 of the 32 required indicators or around 37.64%.
 Keywords: Pengungkapan lingkungan, Company Size, Environmental Performance

Volunteer or Forced: A Portrait of Sustainability Report in Indonesia

Objective: This study aimed to explore the company's seriousness in preparing a sustainability report. The assessment of the indicators' suitability used the guidance of Global Reporting Initiatives and found that the company has tried to fulfill the GRI's Guidance. Method: This study used a qualitative approach to explain sustainability report disclosure and GRI guidance. Thirty-eight companies have been selected from Asia Sustainability Reporting 2018; by using purposive random sampling. There were only three companies chosen as the research subject. Data was collected with document analysis, observation, and depth-interview. Results: This study showed that the award obtained by companies becomes one of the additional motivations related to the level of disclosure suitability. It was related to the seriousness of preparing the sustainability report that the Government can use as environmental organizations and academics to boost the company to implement the social responsibility and environment that implements the activity. It was helpful for stakeholders to assess the company's environmental and social performance. Conclusions: The seriousness of sustainability reporting corresponds with the level of sustainability reporting against GRI standards and the external auditors who review the reports. By implementing sustainability reporting, stakeholders can more holistically assess a company's performance.

The role of women on board in combatting greenwashing: A new perspective on environmental performance

AbstractThis article aims to improve the understanding of corporate governance and environmental reporting literature by analyzing the impact of board gender diversity (BGD) on environmental performance, environmental disclosure, and greenwashing behavior. The panel regression estimation technique with fixed effects was applied to Chinese firm data. As a result, it was found that more women who served on corporate boards enhanced the company's environmental performance and disclosures while limiting greenwashing behavior. The result indicated that women in top management play a constructive role in establishing firms' active environmental initiatives. Furthermore, this relationship was nonlinear and exponentially increased when women's representation reached the threshold of 33.5% representation on board or higher. Based on the findings, no internal bias was found even after other governance and firm‐level control factors and probable endogenies were considered and variable biases were omitted. Notably, the results present important implications for regulators and policymakers by highlighting the influential role of BGD in promoting environmentally responsible practices and reducing greenwashing.