The financial and environmental performance of firms exposed to the EU Emissions Trading Scheme

This thesis is an empirical-based study of the European Union’s Emissions Trading Scheme (EU ETS) and its implications in terms of corporate environmental and financial performance. The novelty of this study includes the extended scope of the data coverage, as most previous studies have examined only the power sector. The use of verified emissions data of ETS-regulated firms as the environmental compliance measure and as the potential differentiating criteria that concern the valuation of EU ETS-exposed firms in the stock market is also an original aspect of this study. The study begins in Chapter 2 by introducing the background information on the emission trading system (ETS), which focuses on (i) the adoption of ETS as an environmental management instrument and (ii) the adoption of ETS by the European Union as one of its central climate policies. Chapter 3 surveys four databases that provide carbon emissions data in order to determine the most suitable source of the data to be used in the later empirical chapters. The first empirical chapter, which is also Chapter 4 of this thesis, investigates the determinants of the emissions compliance performance of the EU ETS-exposed firms through constructing the best possible performance ratio from verified emissions data and self-configuring models for a panel regression analysis. Chapter 5 examines the impacts on the EU ETS-exposed firms in terms of their equity valuation with customised portfolios and multi-factor market models. The research design takes into account the emissions allowance (EUA) price as an additional factor, as it has the most direct association with the EU ETS to control for the exposure. The final empirical Chapter 6 takes the investigation one step further, by specifically testing the degree of ETS exposure facing different sectors with sector-based portfolios and an extended multi-factor market model. The findings from the emissions performance ratio analysis show that the business model of firms significantly influences emissions compliance, as the capital intensity has a positive association with the increasing emissions-to-emissions cap ratio. Furthermore, different sectors show different degrees of sensitivity towards the determining factors. The production factor influences the performance ratio of the Utilities sector, but not the Energy or Materials sectors. The results show that the capital intensity has a more profound influence on the utilities sector than on the materials sector. With regard to the financial performance impact, ETS-exposed firms as aggregate portfolios experienced a substantial underperformance during the 2001–2004 period, but not in the operating period of 2005–2011. The results of the sector-based portfolios show again the differentiating effect of the EU ETS on sectors, as one sector is priced indifferently against its benchmark, three sectors see a constant underperformance, and three sectors have altered outcomes.

Regional environmental policy and sustainable tourism development in the Caribbean

Includes bibliography

Environmental management and operational performance in automotive companies in Brazil: The role of human resource management and lean manufacturing

The main objective of this study is to verify the influence of Environmental Management (EM) on Operational Performance (OP) in Brazilian automotive companies, analyzing whether Lean Manufacturing (LM) and Human Resources (HR) interfere in the greening of these companies. Therefore, a conceptual framework listing these concepts was proposed, and three research hypotheses were presented. A questionnaire was elaborated based on this theoretical background and sent to respondents occupying the highest positions in the production/operations areas of Brazilian automotive companies. The data, collected from 75 companies, were analyzed using structural equation modeling. The main results are as follows: (a) the model tested revealed an adequate goodness of fit, showing that overall, the relations proposed between EM and OP and between HR, LM and EM tend to be statistically valid; (b) EM tends to influence OP in a positive and statistically weak manner; (c) LM has a greater influence on EM when compared to the influence HR has over EM; (d) HR has a positive relationship over EM, but the statistical significance of this relationship is less than that of the other evaluated relationships. The originality of this paper lies in its gathering the concepts of EM, LM, HR and OP in a single study, as they generally tend not to be treated jointly. This paper also provided valid empirical evidence for a littlestudied context: the Brazilian automotive sector. © 2012 Elsevier Ltd. All rights reserved.

Collaborative Change: Environmental Jolt, Network (Re)Design and Firm Performance

Motivated by the need to understand which are the underlying forces that trigger network evolution, we develop a multilevel theoretical and empirically testable model to examine the relationship between changes in the external environment and network change. We refer to network change as the dissolution or replacement of an interorganizational tie, adding also the case of the formation of new ties with new or preexisting partners. Previous research has paid scant attention to the organizational consequences of quantum change enveloping entire industries in favor of an emphasis on continuous change. To highlight radical change we introduce the concept of environmental jolt. The September 11 terrorist attacks provide us with a natural experiment to test our hypotheses on the antecedents and the consequences of network change. Since network change can be explained at multiple levels, we incorporate firm-level variables as moderators. The empirical setting is the global airline industry, which can be regarded as a constantly changing network of alliances. The study reveals that firms react to environmental jolts by forming homophilous ties and transitive triads as opposed to the non jolt periods. Moreover, we find that, all else being equal, firms that adopt a brokerage posture will have positive returns. However, we find that in the face of an environmental jolt brokerage relates negatively to firm performance. Furthermore, we find that the negative relationship between brokerage and performance during an environmental jolt is more significant for larger firms. Our findings suggest that jolts are an important predictor of network change, that they significantly affect operational returns and should be thus incorporated in studies of network dynamics.

Quality management, environmental management and firm performance in the Spanish hotel industry

Comunicación presentada en el XVI Simposio Internacional de Turismo y Ocio, ESADE, 23 mayo 2007.

A környezeti teljesítményértékelés módszerei (Environmental performance evaluation methods)

A környezeti teljesítmény mérésére számtalan módszer létezik. A cikk a környezeti teljesítményértékelési eszközök útvesztőjében kínál némi eligazítást azáltal, hogy hat, a gyakorlatban is többé-kevésbé használt módszert mutat be és értékel. A szerző kísérletet tesz a bemutatott módszerek összehasonlítására is aszerint, hogy kitérnek-e a környezeti és a vállalati teljesítmény kapcsolatának vizsgálatára, illetve a környezeti teljesítményt kellően átfogóan vizsgálják-e. Nagyító alá kerül az a kérdés is, hogy vajon a teljesítményértékelési módszerek alapján jól teljesítő vállalatok valóban tekinthetők-e fenntarthatónak. ________ There are numerous methods existing for evaluating corporate environmental performance. The article offers some guidance in this labyrinth by introducing and evaluating six, in practice also used methods. The author makes an attempt to compare the different methods, whether they cover the relationship between environmental and company performance, and whether they analyse different components of environmental performance comprehensively enough. The question is also covered, whether companies with excellent performance based on the methods analysed can really be regarded as sustainable companies.

Student Independent Projects Environmental Studies 2011: Vending Machines and Sustainable Development on Grenfell Campus, Memorial University

This Paper discusses the food and beverage machines that are located at Memorial University's Grenfell Campus and endeavors to assess how much those vending machines are being used and how they affect sustainability initiatives on campus. A survey was conducted to gauge the use of vending machines, their content and what is purchased, and if participants did not purchase from thes machines they were also asked why they did not.This survey produced many other questions that are directly linked to vending machines.Water quality on campus was heavily disscussed, along with the use of bottled water and implications associated with drinking only from bottles that are thrown away. The study concludes with a discussion of the alternative choices that can be implemented to replace vending machines.

WikiRate.org - Leveraging collective awareness to understand companies' environmental, social and governance performance

Abstract. WikiRate is a Collective Awareness Platform for Sustainability and Social Innovation (CAPS) project with the aim of \crowdsourcing better companies" through analysis of their Environmental Social and Governance (ESG) performance. Research to inform the design of the platform involved surveying the current corporate ESG information landscape, and identifying ways in which an open approach and peer production ethos could be e ffectively mobilised to improve this landscape's fertility. The key requirement identi ed is for an open public repository of data tracking companies' ESG performance. Corporate Social Responsibility reporting is conducted in public, but there are barriers to accessing the information in a standardised analysable format. Analyses of and ratings built upon this data can exert power over companies' behaviour in certain circumstances, but the public at large have no access to the data or the most infuential ratings that utilise it. WikiRate aims to build an open repository for this data along with tools for analysis, to increase public demand for the data, allow a broader range of stakeholders to participate in its interpretation, and in turn drive companies to behave in a more ethical manner. This paper describes the quantitative Metrics system that has been designed to meet those objectives and some early examples of its use.

Green supply chain management practices and firm performance: evidence from Finland

In order to address the increasing stakeholder requirements for environmentally sustainable products and processes, firms often need the participation of their supply chain partners. Green supply chain management has emerged as a set of managerial practices that integrate environmental issues into supply chain management. If implemented successfully, green supply chain management can be a way to achieve competitive advantage while enhancing the environmental sustainability of the firm. The overall purpose of this dissertation is to contribute to the discussion on green supply chain management practices from the perspective of their drivers and performance implications. The theoretical background arises from the literature on competitive strategy, firm performance and green supply chain management. The research questions are addressed by analysing firm-level data from manufacturing, trading and logistics firms operating in Finland. The empirical data comes from two consecutive Finland State of Logistics surveys in 2012 and 2014, combined with financial reporting data from external databases. The data is analysed with multiple statistical methods. First, the thesis contributes to the discussion of the drivers of GSCM practices. To enhance the understanding of the relationship between competitive strategy and GSCM practices, a conceptual tool to describe generic competitive strategy approaches was developed. The findings suggest that firms pursuing marketing differentiation are more likely to be able to compete by having only small environmental effects and by adopting a more advanced form of external green supply chain management, such as a combination of strong environmental collaboration and the increased environmental monitoring of suppliers. Furthermore, customer requirements for environmental sustainability are found to be an important driver in the implementation of internal GSCM practices. Firms can respond to this customer pressure by passing environmental requirements on to their suppliers, either through environmental collaboration or environmental monitoring. Second, this thesis adds value to the existing literature on the effects of green supply chain management practices on firm performance. The thesis provides support for the idea that there is a positive relationship between GSCM practices and firm performance and enhances the understanding of how different types of GSCM practices are related to 1) financial, 2) operational and 3) environmental performance in manufacturing and logistics. The empirical results suggest that while internal GSCM practices have the strongest effect on environmentalperformance, environmental collaboration with customers seems to be the most effective way to improve financial performance. In terms of operational performance, the findings were more mixed, suggesting that the operational performance of firms is more likely to be affected by firm characteristics than by the choices they make regarding their environmental collaboration. This thesis is also one of the first attempts to empirically analyse the relationship between GSCM practices and performance among logistics service providers. The findings also have managerial relevance. Management, especially in manufacturing and logistics industries, may benefit by gaining knowledge about which types of GSCM practice could provide the largest benefits in terms of different performance dimensions. This thesis also has implications for policy-makers and regulators regarding how to promote environmentally friendly activities among 1) manufacturing; 2) trading; and 3) logistics firms.

Regional Diversification and Performance: Conceptualization and Competing Strategic Objectives

This dissertation comprised of three essays provides justification for the need to pursue research on multinationality and performance with a more fine-grained approach. Essay one is a conceptual response to an article written by Jean-Francois Hennart in 2011 which questions the need and approach toward future research in this domain. I argue that internalization theory does not render multinationality and performance research meaningless and identify key areas where methodological enhancements can be made to strengthen our research findings with regard to Hennart’s call for more content validity. Essay two responds to the need for more-fine grained research on the consequences of multinationality by introducing non-traditional measures of performance such as social and environmental performance and adopting a more theoretically relevant construct of regionalization to capture international diversification levels of the firm. Using data from the world’s largest 600 firms (based on sales) derived from Bloomberg and the Directory of Corporate Affiliates; I employ general estimating equation analysis to account for the auto-correlated nature of the panel data alongside multivariate regression techniques. Results indicate that regionalization has a positive relationship with economic performance while it has a negative relationship with environmental and social performance outcomes, often referred to as the “Triple Bottom-Line” performance. Essay three builds upon the work in the previous essays by linking the aforementioned performance variables and sample to corporate reputation which has been shown to be a beneficial strategic asset. Using Structural Equation Modeling I explore economic, environmental and social signals as mediators on relationship between regionalization and firm reputation. Results indicate that these variables partially mediate a positive relationship between regionalization and firm reputation. While regionalization positively affects the reputation building signal of economic performance, it aids in reputation building by reducing environmental and social disclosure effects which interestingly impact reputation negatively. In conclusion, the dissertation submits opportunities for future research and contributes to research by demonstrating that regionalization affects performance, but the effect varies in accordance with the performance criterion and context. In some cases, regional diversification may produce competing or conflicting outcomes among the potential strategic objectives of the firm.

Smart buildings for healthy and sustainable workplace: scoping study report

Deficiencies in the design and operation of office buildings can give rise to high social, environmental and economic (triple bottom line) costs. As a result, there are significant pressures and incentives to develop ‘smart building’ technologies that can facilitate improved indoor environment quality (IEQ), and more energy efficient operation of office buildings. IEQ indicators include lighting, ventilation, thermal comfort, indoor air quality and noise. In response to this, the CRC for Construction Innovation commissioned a six-month scoping study (Project no. 2002-043) to examine how different technologies could be used to improve the ‘triple bottom line’ for office buildings. The study was supported by three industry partners, Bovis Lend Lease, Arup, and The Queensland Department of Public Works. The objective of the study was to look at the history, trends, drivers, new technologies and potential application areas related to the operation of healthy and efficient office buildings. The key output from the study was a recommendation for a prototype system for intelligent monitoring and control of an office environment, based on identified market, technical and user requirements and constraints.