European Industry Research Articles

The Impact of Transitory Climate Risk on Firm Valuation and Financial Institutions: A Stress Test Approach

Addressing recent calls by European regulatory and supervisory authorities, we develop a new bottom-up climate risk assessment method to examine the resilience of the European banking industry regarding transitory climate risks. We illustrate our approach by estimating the impact of a 50–100 EUR carbon tax per tCO2\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$\ extit{tCO}_{2}$$\\end{document} equivalent on the valuation and default risk of STOXX Europe 600 firms. For about 5% of the sample firms, we find asset devaluation shocks larger than 30% and for about 16% of the firms probabilities of default (PDs) dropping below investment-grade level of 3%. At the sector level, our results yield asset devaluations shocks of 15–36% and new PDs of 5–34% for the six most affected sectors. Running a stress test on credit risk based on these results, we find a decrease in capital ratios between -1.2\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$-1.2$$\\end{document} and -1.6\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$-1.6$$\\end{document} percentage points for key regulatory capital ratios in the most adverse scenario while only addressing 36% of the bank’s total risk-weighted assets. Our analysis sheds light on the substantial transitory climate risk for asset portfolios of banks and contributes to the pressing question how to integrate climate risk into risk management and regulation of financial institutions.

Trademarks and Industrial Designs Management in European Industry in the Context of Industrial Property Safety

Abstract Utilization of companies trademarks and industrial designs in the market strengthens activities of selected companies. Authors of the paper analyse the significance of a trademark and industrial design for the level of the company's industrial property safety. The threats resulting from the lack of trademark registration were identified and analysed, and selected cases from the case law in the field of trademark protection were reviewed to indicate the scope of protection and safety of products placed on the market.

Digitalisation and Decarbonisation Challenges of Inland Waterways Freight Logistics Transport and their Integration into Regional Supply Chains – A Case Study

Abstract an era of increased sustainable transport, the European inland navigation industry has received significant attention to attain sustainable transport. Tremendous opportunities to substantially move freight on waterways are present in the UK; however, several challenges have been appropriately addressed, including infrastructural gaps and various institutional support programs. The paper addresses the UK’s current situation of inland navigation and the key challenges affecting the sectors as a viable alternative transport solution. The article explores and summarises the geographic opportunities, commercial feasibility, and the current condition of the UK’S inland navigation sector. From the practical scenario of the UK’s experience, an attempt was made by the authors to find the critical challenges and issues faced by the industry. The emerging themes from the analysis of this paper indicated governance and leadership issues, cooperation, and coordination mechanism between establishments with various functions and responsibilities, merged with infrastructural investment, are strategic elements for expansion in the UK. Conclusively, the authors presented recommendations for improvement and sustainable development.

EuCIA releases position paper on new ELV Directive

The European Composites Industry Association (EuCIA) calls for collaboration to develop an EU-wide strategy for dealing with composite components in ELV vehicles.

Harmonizing Sustainability Disclosure and Financial Performance. An In-depth Exploration within the European Energy Industry and Beyond

Abstract This study seeks to investigate how the sustainability disclosure influence the financial performance of companies listed in the Top 100 Global Energy Leaders. The Refinitiv Eikon database in the main source where the data was collected for the 2017-2021 period, resulting in a data set of 361 observations for 71 companies. The analysis examined global and regional variables, and the results obtained using the SPSS statistical package were found to be mixed. The findings revealed that the ESG score had a significant negative impact on both Return on Equity (ROE) and Return on Assets (ROA) for the overall sample and Asia. In contrast, the impact was negative but statistically insignificant for Europe and positive but insignificant for North America. Furthermore, the environmental score had a negatively impact on ROA for the overall sample, while its influence was statistically insignificant in Asia, Europe and North America for both ROA and ROE. Additionally, the social score demonstrated a significant negative impact on the overall sample and Asia, while its impact was not significant in other regions. In terms of governance score, it significantly negatively affected ROE for the overall sample, Asia, and Europe, but had a positive and significant impact in North America. This existing literature in the field is completed in new results from the companies acting in the energy sector in different regions of the world. These findings have also some practical implications, being valuable for stakeholders in the decision-making process and for team management who seek to incorporate sustainable practises into corporate strategies.

Development of production and environmental platforms for the European aggregates and minerals industries

Both quantification and communication of environmental impacts can create the foundation for improved sustainable production and decision-making. Without widespread information about site-specific environmental impacts, stakeholders cannot make a well-informed decision based on the local system boundaries. With organization-wide digital platforms, different aspects of production and management can be integrated and customized based on the organization's needs. This paper aims to give an overview of the development of three different process and environmental platforms, their purposes, system structure, system constraints and the applied framework. These respective platforms are being developed separately for the Swedish aggregates industry, the European aggregates industry and the European critical raw materials sector. The initial demonstrator can integrate site-specific information with a simulation-based allocation of resources and generate Life-Cycle Assessment and Environmental Product Declaration reports harmonized with the EN 15804 standard and the associated Product Category Rules.

Towards Society 5.0: Enabling the European Commission’s Policy Brief ‘Towards a sustainable, human-centric and resilient European Industry’

The concept of Society 5.0 – a superintelligent society of humans, nature and technology in sustainable balance – was launched in Japan in 2016. Danish business academics Prof Christian Nielsen and Prof Jacob Brix propose a systematic, second track, bottom-up ‘society transition model’ to ease the shift towards this next stage of society.

When crises meet grand environmental challenges: Navigating intertemporal tensions in European manufacturing family firms

ABSTRACT The grand environmental challenge of climate change represents one of the key ongoing, long-term obstacles for organizations. When interrupted by short-term exogenous crises like the COVID-19 pandemic and the shock of the Ukrainian war, the urgency of addressing this grand challenge becomes more pressing, albeit more challenging. While family firms as long-term oriented organizations might generally be well equipped to tackle climate change, we know surprisingly little on how they simultaneously experience and navigate the long-term horizon of grand environmental challenges and the short-term pressures of exogenous crises. Drawing on research around long-term orientation (LTO) and a growing stream investigating intertemporal tensions, we investigate this question building on 41 interviews with nine family firms in the context of the European manufacturing industry. Applying an abductive approach, our findings unveil three intertemporal tensions that unfold when short-term and long-term objectives collide. Besides, we show that family firms, due to their LTO, perceive these tensions with a greater intensity. Navigating the perceived tensions, we identify two mechanisms employed by family firms that mitigate the negative implications of LTO. Doing so, we contribute to extant research on grand challenges and cast light on the downsides of LTO in family firms.

Management of data flows in modern industry using blockchain

Recent research and publications. "Industry 4.0" is a concept of the industrial revolu-tion, which is based on the use of modern technologies and digital innovations in production and distribution processes. The introduction of the concept of "Industry 4.0" was designed to improve the competitiveness of European industry and increase productivity and product quality. A blockchain is a distributed data structure that is replicated and distributed among network members. The purpose of the study is to improve automation processes, increase efficiency, re-duce delays and errors in information systems of industry and supply chains by using block-chain technologies in the construction of information systems. Main material of the study. The paper makes an analysis of approaches and algorithms to data management in "Industry 4.0" information systems. Blockchain algorithms are com-pared to classical approach with other databases in the client-server architecture. Conclusions. By implementing algorithms based on blockchain technology, namely by using the Merkle Tree, digital signature technology, and by using consensus algorithms in the framework of decentralized data storage in Distributed Ledger Technology, the processes of automation and efficiency in data flow management are improved, providing a secure and transparent way to store and share data that reduces delays and errors in industry informa-tion systems and supply chains.

A bi-objective optimization approach for carbon capture and storage supply chain network combining with pricing policies: Economic and social aspects

Carbon capture and storage (CCS) technology and pricing policies are two mitigation strategies that attempt to tackle the carbon emission problem. Nonetheless, the uncertainty of public reaction to CCS infrastructure installation has been noted as a significant issue that may lead to either cancelations, delays, or influence the deployment cost of CCS infrastructure. Although these strategies are solutions to reduce carbon emissions, the entire supply chain itself needs to align with sustainability policy. While some previous studies have addressed mitigation strategies or the combination of social objective and CCS technology, the impact of social objectives on reservoir openness has not been explored. This article contributes to the literature by illustrating the effect of social objectives on reservoir openness and the total cost of the CCS supply chain. Through the development of a two-stage mixed-integer linear programming model, we optimize the supply chain network design. In the first stage, a single-objective model minimizes capture, transportation, and sequestration costs along with CO2 emission costs to the atmosphere, considering various carbon tax prices. In the second stage, a bi-objective model maximizes social acceptance towards CO2 injection wells (reservoirs) to analyze the impact of cultural dimensions. Our findings reveal that maximizing the social objective leads to increased costs compared to the economic optimum, and it significantly influences the openness of reservoirs based on cultural dimensions. Furthermore, we demonstrate that an increase in the CO2 tax enhances the amount of captured carbon and the complexity of the pipeline network in the supply chain. This insight has implications for governments and decision-makers who can encourage industries to adopt CCS technology by setting appropriate carbon tax prices. To validate the model, we apply it to a case study in the European Union cement industry, one of the major carbon emitters among all industries. Our results not only confirm the model's effectiveness but also show its potential for practical application. Overall, our study presents a comprehensive framework for designing a two-stage sustainable supply chain network for CCS technology that optimizes economic and social objectives while considering CO2 pricing.

INDIAN CHINTZ-CRAFT IDENTIFICATION AS AN EXQUISITE HAND-PAINTED TRADITIONAL TEXTILE

The present social and environmental contexts are very importantly governed by the interplay of crafts, fashion, and sustainability. Their efficient combination contributes to employment generation and the creation of new economic avenues for the country. This is the key focus issue that research studies should attempt to achieve. There is a need to understand “craft”, with a perspective that exerts strength, glory, social and cultural connections. In present times, “Kalamkari” is an extremely popular Indian traditional textile craft in which, patterns are drawn with bamboo sticks called “kalam” on cotton fabric. This is a derivative of patterning the fabric with resist and mordant painting and then natural dyeing to pattern them. In relation to this painting tradition, the word “Chintz,” is a popular terminology from the seventeenth and eighteenth centuries in the world of textiles. The term according to the researcher is referred to a textile, as well as a technique, involving the mordant and resist painting with natural dyes on cotton fabrics only. This textile, with its awestruck designs, revolutionized global trade and made India popular globally. During that period, the Chintz were exported to various countries like Japan, Thailand, Africa, and most importantly to European countries. The Indian Chintz export to European countries reached immense popularity, revolutionizing the “Chintz Craze” with drastically increased demand. During the industrial revolution in Europe, these beautiful hand-crafted textiles created a threat to the European textile Industry. Hence the chintz export from India was banned, which led to the downfall in their demand and the gradual extinction of these textiles along with the meticulously perfected techniques involved in making them. In 1958, Kamala Devi Chattopadhyay tried to revive this technique (mordant and resist painting with a bamboo pen) and termed it “Kalamkari”. This led to the evolution of two different forms related to this ancient craft based on the place it was revived, namely Kalamkari from Sri-Kalahasti and Machilipatnam. This paper is an attempt to retrieve the rich history of the Indian Chintz, with its main characteristic features, technique, and find differences between the present styles with the ancient traditional forms of mordant and resist painting technique with natural dyes. The researcher has made an earnest effort in establishing and retrieving the lost identity of this textile. It was also observed that there is a difference between the traditional style and revived forms (Sri-kalahasti and Machilipatnam) styles with respect to the materials, motifs, colors, and workmanship, as observed from painted pieces that were studied.

Development of the Single European Sky

The objective of the research is to present the development of the Single European Sky initiative and to outline its importance for the European economy and the European aviation industry. The paper reviews in detail the concept of the Single European Sky, the economic factors that have led to its formation and the European regulatory framework comprised of a set of EU-wide rules on Air Traffic Management (ATM) safety, on the provision of ATM services, on airspace management and on interoperability within the network, as well as financial support to the technological modernization programme (the SESAR project). It presents the rulemaking activity of the European Commission to deal with the inefficiency of the European ATM System due to the fragmented character of international airspace, fragmented into smaller air traffic control centres divided by the national boundaries, effectively limiting integration, interoperability, and economies of scale, and leading to induced delays, excessive air-traffic control costs and uneconomical flight trajectories. The applied research methodology includes content analysis, analysis of statistical data, historical data, conclusions, and generalizations. The hypothesis is that the strategic goals of the Single European Sky initiative and its implementation are beneficial for the competitiveness of the European aviation industry, and the common rules and the introduction of a harmonized legislative framework will contribute to improving the efficiencies of ATM while accounting for the interests and singularities of all stakeholders in the European aviation value chain.

The Protection of Human Genetic Information in the EU: Ethical, Constitutional and Criminal Law Aspects

The European Union has achieved a significant milestone through the widespread implementation of genomic and postgenomic technologies in diverse fields including personalized and regenerative medicine, immunology, nutrition practices, sports medicine, and the wellness industry. This article revolves around the practical application of genomics and EU bioethics, with a specific emphasis on investigating the cutting-edge legal methodologies referred to as Lex Genetica and Legal Biotech. The European Union market for genomic research is presently experiencing significant and swift expansion, coupled with ongoing progress and effective integration of genetic technologies. Consequently, there exists a pressing necessity to strengthen legal protections and guarantees, specifically concerning the privacy of human genomic information, within the domain of EU criminal legislation. Within the framework of Horizon Europe, a funding program dedicated to research and innovation, the European Union (EU) prioritizes three pillars, with one specifically focused on tackling global challenges and augmenting the competitiveness of European industries. The “health” cluster within this pillar underscores the significance of advancing healthcare technologies, reducing health hazards, protecting communities, and fostering the welfare of individuals. Genomic research harbors immense possibilities in achieving these aims and has emerged as one of the most pioneering and groundbreaking fields in recent years. This paper aims to complement prior publications by offering an updated analysis of selected topics since 2018. The urgency of legal regulations for all the accompanying processes becomes evident within the global roll-out of postgenomic technologies and the pan-European tendency to move from fundamental exploratory research to the practical application of omics technologies in the EU (the study of genome, proteome, and metabolome). Numerous jurisdictions in the EU provide for gene-related offenses, including cloning, modifying the human germ line, and dispersing GMOs without appropriate authorizations. However, the specific offenses vary in the EU countries to a large degree.

Unraveling the key determinants of successful six sigma implementation: an empirical investigation

This article aims to analyze the importance of critical success factors in effectively implementing Six Sigma. It delves into the determination of key factors and attributes that contribute to successful adoption, considering that not all Six Sigma endeavors have achieved the desired outcomes. According to the research, a significant portion of corporate Six Sigma initiatives (approximately 60%) fail due to incorrect integration of vital factors and misguided assumptions. To conduct the study, a research survey incorporating a Likert scale questionnaire with a simple random sampling method was distributed among 2,325 potential participants, resulting in 573 responses, primarily from Germany, the United Kingdom, and Sweden. Through various structural equation modeling (SEM) approaches, such as exploratory factor analysis (EFA) and confirmatory factor analysis (CFA), the study revealed four essential elements for success: (1) the competency of belt system employees; (2) project management skills; (3) organizational economic capability; and (4) leadership commitment and involvement. These findings hold significant implications for institutions, practitioners, and researchers seeking to incorporate these elements into their Six Sigma deployment strategies for long-term success. The study's originality lies in its contribution to assessing critical success factors in Six Sigma deployment within the European automobile industry, utilizing a mixed-methods research design supplemented by descriptive statistics.

Assessment of the content of macronutrients and microbiological safety of dry dog foods

In Europe, there are no legal regulations specifying maximum allowable limits for pathogenic bacteria or fungi and yeasts in dog food. For proximate composition, the European Pet Food Industry Federation (FEDIAF) nutritional guidelines provide minimum recommended levels for protein and fat only, not for other ingredients and no safe maximum levels. Therefore, the aim of this study was to evaluate the microbiological safety of 35 dry dog foods, taking into account the division into foods with grains as the main plant ingredient and those described as grain-free. We assumed that grain-included foods are more susceptible to the presence of the total number of aerobic bacteria. This parameter is an essential, hygienic criterion informing about the microbiological safety of the pet food. It also inform about the microbiological quality of the food ingredients used, the effectiveness of decontamination during the production process, sanitary and hygienic conditions during the acquisition, processing and marketing of pet food and its components. In the case of macronutrients, the results in some cases were multiples of the minimum recommended levels. The most important microorganisms that presence was found in the analyzed dog foods were indicator bacteria (E. coli and coliform bacteria, Clostridium perfringens), whose presence in feed constitutes microbiological contamination. They inform about sanitary and hygienic conditions during the production and storage of the pet food. The current guidelines recommend microbiological testing of food for the presence of Salmonella bacilli as the basic indicator for assessing the sanitary quality. No Salmonella spp. was detected in any of the foods. The remaining analyzed bacteria (Proteus spp., Enterococcus spp., Staphylococcus spp.) as well as molds and yeasts, were present in both grain-included and grain-free foods. The obtained results showed that in terms of microbiological safety, grain-included foods come out worse, because microorganisms were detected more frequently in this type of dry dog food.

Comparison of Key Nutrient Content of Commercial Puppy Foods with Canine Dietary Requirements

A balanced diet significantly impacts a dog’s development with regards to energy, growth, immunity, and overall health. Customizing a dog’s diet according to its age, size, and activity level is imperative for its welfare. Unbalanced diets can lead to nutritional deficiencies. This study assesses the key nutrient content of puppy diets that display information on EPA and DHA fatty acids. The diets fulfilled nutritional requirements for protein and fat according to the European Pet Food Industry Federation (FEDIAF) but varied in terms of levels of essential fatty acids. The nutrient levels in certain diets did not correspond to the label claims. None of the diets fulfilled the EPA and DHA claims, indicating an inconsistent ratio of n−6 to n−3. Additionally, trans fat such as C18:1 elaidic acid was present in all diets.

Food chain information for pigs in Europe: A study on the status quo, the applicability and suggestions for improvements

Food chain information (FCI) as stated in Regulation (EC) No 853/2004 plays a vital role in supporting decision-making and guiding of risk managers at abattoirs by providing valuable insights into inspection methods and intensity. However, the lack of specific guidelines on data collection within FCI presents a challenge. To address this issue, we conducted an online survey among stakeholders in the European pig industry to assess the current state of FCI implementation and identify areas for improvement. Out of the 93 respondents, over 50% reported they had access to data on ante- and post-mortem findings as well as on treatments with withdrawal periods during the fattening period. Additionally, 49% had access to data on veterinary medicinal products (VMPs) administered to the pigs. Despite the mandatory nature of this data according to Regulation (EC) No 853/2004, our findings revealed a lack of legally required information in the transmission of FCI. When evaluating the usefulness of FCI in food safety decision-making, 60% of the respondents found it helpful, while 40% expressed varying levels of dissatisfaction with the currently available FCI. These results highlight the current challenges in the implementation of FCI for pigs in Europe. Furthermore, our study identified a significant correlation between the assessment of FCI usefulness and access to animal health data and additional information on abnormalities. We also identified research gaps in establishing critical thresholds for mortality rate and determining the relevant period for VMP documentation. To enhance the FCI system and improve animal health and food safety, management, comprehensive legislation and technical implementations for data exchange are crucial. Close collaboration among stakeholders, stakeholder training, development of abattoir-specific strategies and integration of harmonised epidemiological indicators into FCI are recommended. In conclusion, clear specifications regarding the necessary data for FCI are vital as FCI plays an integral role in the risk-based meat safety assurance system. Implementing these recommendations will enhance the effectiveness of FCI, improve decision-making processes and strengthen the overall food safety management.

Systematic Insights into a Textile Industry: Reviewing Life Cycle Assessment and Eco-Design

The worldwide textile sector is one of the most polluting and consuming natural resource value chains. In recent years, trends have demonstrated a linear model driven by fast fashion, increasing the sustainability problems of this sector. The European market and industry are changing the paradigm and promoting some actions towards a sustainable value chain. This paper applies a systematic approach to reviewing scientific research, where Life Cycle Assessment (LCA) is implemented as a tool to understand the impacts considering a holistic life cycle framework, from raw materials to the end-of-life of textile products. The methodology and criteria applied resulted in 73 articles used for qualitative analysis, of which 39 met the criteria for quantitative analysis. The quantitative results reported in the studies were organized and presented by phase of the garment production life cycle (production of fiber, yarn, fabric, manufacturing, and recovery/end of life). From a cradle-to-gate perspective, wool yarn production, by worsted processing, was the material with the highest values (95.70 kg CO2 eq/kg) for climate change/global warming potential, closely followed by silk fabric (80.90 kg CO2 eq/kg). Extending to a cradle-to-grave boundary, polyester had the highest values for the previously mentioned category, reaching a potential release of 40.28 kg CO2 eq per kilogram of polyester textile. When data was available, the user phase predominantly contributed to climate change/global warming potential. Additionally, there were significant differences in maximum and minimum values for some of the materials, which were related to methodological considerations, database inventory, and frequency of use and care considered by the different authors. The study also addresses the considerations and limitations of diverse LCA impact assessment tools.

3.A. Workshop: Accountability of the European food industry to improve food systems for public and planetary health

Abstract Currently, unhealthy food environments are a major influence on food and beverage choices and nutritional status throughout Europe. Improving population diets for both public health and environmental sustainability requires a comprehensive response from multiple stakeholders, including governments, private sector organisations, non-government organisations, and consumers. Amongst these groups, companies across the food industry have been highlighted by the World Health Organization (WHO) and other international organizations as having an important role in addressing obesity and chronic diseases (NCDs) as well as unsustainable food systems. The need for broad-based action has led to an increased focus on increasing the accountability of several sectors in the food industry for taking action to address the problem, including through rigorous monitoring and benchmarking of their commitments and performance against independent targets. The INFORMAS (International Network for Food and Obesity/NCDs Research, Monitoring and Action Support) developed the Business Impact Assessment on population nutrition and obesity (BIA-Obesity) and the Business Impact Assessment on sustainability (BIA-Sustainability) to assess the commitments and practices of several food industry sectors (packaged food and non-alcoholic beverages, quick service restaurants, supermarkets, caterers) in relation to both obesity prevention and sustainable food systems. The tools consist of a range of indicators across 6 action areas for BIA-Obesity (corporate nutrition strategy, product reformulation, product labeling, product and brand promotion, product accessibility and relationships with other organizations) and 11 action areas for BIA-Sustainability (packaging, energy use, emissions, water and discharge, biodiversity, climate change adaptation, food loss and waste, environmental compliance, relationships with other organisations, corporate sustainability strategy and reducing ruminant-based products). In addition, methods have been developed to assess the corporate political activities as well as the market structure and dynamics of several food industries. Corporate political activities of the food industry across sectors are generally assessed using a range of publicly available data sourced from the industry itself, governments, the media and other sources. The workshop will discuss the latest findings on the commitments, practices, market structure and dynamics and corporate political activities of the food industry in relation to both obesity prevention and sustainable food systems across food industry sectors in Europe, as well as the next steps, both in terms of innovations in methodologies, different target sectors as well as in terms of using the results for better holding to account these actors in order to address obesity as well as unsustainable food systems in Europe. Key messages • Monitoring and benchmarking the commitments and practices of the food industry across sectors is key to increase accountability for action. • Substantial changes to the structural and regulatory conditions of corporate food systems are needed to improve population and planetary health.

Herding behavior and the dynamics of ESG performance in the European banking industry

We investigate the dynamics of ESG performance and explore the potential driving force, including the role of herd behavior among banks. Utilizing Phillips and Sul (2007)'s panel data convergence model and data from the EURO STOXX Banks index, we identify a significant divergence in ESG performance followed by convergence towards separate clusters or clubs after 2018. Notably, banks with lower Return on Equity (ROE) and leverage demonstrate herding tendencies towards improved ESG performance, emphasizing sustainability objectives and community ties. The study contributes to understanding the potential driving forces behind ESG convergence among EU banks.