The impact of perceived corporate environmental performance on the behavior of capital market decision makers : analysis of food industry companies

Environmental protectionism and sustainable development has been gaining increased attention among governments, investors and consumers alike. As a result, firms are facing growing pressure from the various stakeholders to improve their environmental performance. This study is focusing on the food industry, which in recent years has been a subject of increased scrutiny due to their role in resource consumption, waste generation and unsustainable production practices. Our research is aiming to examine how the financial community evaluates the environmental stewardship of food industry companies as proxied by market reactions in response to environmental news. Are all company related environmental news items evaluated equally, and which financial and non-financial firm-specific attributes can influence market responses? Have there been changes in reactions on the stock exchange in the past two decades?

Market valuation of environmental performance

This research investigated the general association between corporate environmental performance and the firms’ annual returns independent of any particular environmental event. The association analysis was based on the most recent environmental data for the years 2006, 2007, and 2008. The results indicated that while some environmental variables were significantly associated with firms’ returns, the majority were not. The results also indicated that environmental concerns were more likely to be associated with increase in the firm value than were environmental strengths; however, there were no mean differences between firms whose environmental performance increased as compared with those whose performance deteriorated. Overall, the results provided support for the perspective that environmental strengths require firm expenditures that place additional financial burdens on firms, resulting in lower stock returns.^

Control of MNC environmental performance and the challenges of subsidiary network dimensions

The trend of green consumerism and increased standardization of environmental regulations has driven multinational corporations (MNCs) to seek standardization of environmental practices or at least seek to be associated with such behavior. In fact, many firms are seeking to free ride on this global green movement, without having the actual ecological footprint to substantiate their environmental claims. While scholars have articulated the benefits from such optimization of uniform global green operations, the challenges for MNCs to control and implement such operations are understudied. For firms to translate environmental commitment to actual performance, the obstacles are substantial, particularly for the MNC. This is attributed to headquarters' (HQ) control challenges (1) in managing core elements of the corporate environmental management (CEM) process and specifically matching verbal commitment and policy with ecological performance and by (2) the fact that the MNC operates in multiple markets and the HQ is required to implement policy across complex subsidiary networks consisting of diverse and distant units. Drawing from the literature on HQ challenges of MNC management and control, this study examines (1) how core components of the CEM process impact optimization of global environmental performance (GEP) and then uses network theory to examine how (2) a subsidiary network's dimensions can present challenges to the implementation of green management policies. It presents a framework for CEM which includes (1) MNCs' Verbal environmental commitment, (2) green policy Management which guides standards for operations, (3) actual environmental Performance reflected in a firm's ecological footprint and (4) corporate environmental Reputation (VMPR). Then it explains how an MNC's key subsidiary network dimensions (density, diversity, and dispersion) create challenges that hinder the relationship between green policy management and actual environmental performance. It combines content analysis, multiple regression, and post-hoc hierarchal cluster analysis to study US manufacturing MNCs. The findings support a positive significant effect of verbal environmental commitment and green policy management on actual global environmental performance and environmental reputation, as well as a direct impact of verbal environmental commitment on green policy management. Unexpectedly, network dimensions were not found to moderate the relationship between green management policy and GEP.

Assessing the Environmental Performance of New Mobility

This report has two main goals. First to improve methodologies of new mobility services .Second identify the solution to improve new mobility in urban transportation to decrease energy loss and decline climate change. This report also compares energy use and greenhouse gasses (GHG) emission impact for new mobility and all transportation modes. Having focus on central estimates and a range of possible alternatives to enhance the result to advance environmental effects. This analysis and research help to identify the possible solutions to make new mobility more sustainable

Research framework for the connection between environmental collaboration and firm performance

This thesis focuses on collaborative activities with regard to environmental issues both within the firm and outside the firm with the key suppliers and customers, i.e. internal and external environmental collaboration. Integrating environmental thinking into supply chain management has received increasing interest in recent years. The relational view and the natural resource-based-view together suggest that environmental capabilities can be built jointly with supply chain partners and used to gain sustained competitive advantage. Several studies have been undertaken to analyse the connection between environmental activities and firm performance but most studies have taken only economic performance into account. This study pays attention also to two other dimensions of firm performance, intra-firm supply chain performance and environmental performance, and aims at presenting the linkages between them and environmental collaboration. This thesis creates a research framework for the connections between environmental collaboration and firm performance and suggests approaches to analyse these. In order to find out the key concepts and their relationship, an extensive literature review is conducted. The research framework proposes a positive connection between internal and external environmental collaboration and all three dimensions of firm performance. In addition, environmental performance and intra-firm supply chain performance are expected to contribute positively to economic performance. Hence, firms are suggested to benefit from environmental collaboration both within the firm and outside the firm. Empirical testing of the developed research framework is out of the scope of this study. However, this thesis proposes using a mixed methods research approach, including survey research and multiple case studies. Finland State of Logistics 2012 survey commissioned by the Finnish Ministry of Transport and Communications and conducted by Turku School of Economics is used as an example of data for the quantitative phase. The applicability of these two methods is discussed at a general level and with regard to analysing the research framework developed in the thesis. Future research will aim at the development of the research framework and the methods in order to confirm the connection between environmental collaboration and firm performance.

Environmental management system and human resource practices: is there a link between them in four Brazilian companies?

The aim of this article is to analyze the theoretical model proposed by [Jabbour CJC, Santos FCA. Relationships between human resource dimensions and environmental management in companies: proposal of a model. Journal of Cleaner Production 2008;16(1):5 1-8.] based on the data collected in four Brazilian companies. This model investigates how the phases of the environmental management system can be linked to human resource practices in order to attain continuous improvement of a company`s environmental performance. Our aim is to contribute to a field, which has little empirical evidence. Although the interaction between the phases of the environmental management system and human resource practices is recommended by the specialized literature [Daily BE Huang S. Achieving sustainability through attention to human resource factors in environmental management. International Journal of Operations and Production Management 2001:21(12):1539-52.], the results indicate that most of the theoretical assumptions could not be confirmed in these Brazilian companies. (C) 2008 Elsevier Ltd. All rights reserved.

Environmental assessment of residential buildings with an emphasis on water conservation

The construction, operation and demolition of buildings represent one of the most damaging human activities in the global environment nowadays and water use and conservation is one of the most representative environmental loads to be considered. Brazil, unlike some other countries, has not yet implemented its own body building environmental assessment. The development of an environmental assessment system requires the identification of the most important topics to be considered in each theme for each country or region, due to local environmental agenda. This article presents a summary of the main topics concerning water conservation considered in some international environmental building assessment systems and presents a proposal of topics to take into account in a Brazilian assessment system. Practical application: The civil construction industry is not only one of the biggest sectors in the economy but is also one of the greatest polluters. Along with standardisation, it is also necessary to establish measures to attract significantly higher levels in different topics related to sustainable construction. New mechanisms that allow users to recognise the difference between buildings with different sustainable performance levels need to be developed. This article will be used as a base for the development of a Brazilian system of assessment and rating for building environmental performance and sustainability in terms of water use and conservation.

Combined production of sugar, ethanol and electricity: Thermoeconomic and environmental analysis and optimization

Many works have shown the potential of the Brazilian sugarcane industry as an electricity supplier. However, few studies have studied how this potential could be achieved without jeopardizing the production of sugar and ethanol. Also, the impact of modifications in the cogeneration plant on the costs of production of sugar and ethanol has not been evaluated. This paper presents an approach to the problem of exergy optimization of cogeneration systems in sugarcane mills. A general model to the sugar and ethanol production processes is developed based on data supplied by a real plant, and an exergy analysis is performed. A discussion is made about the variables that most affect the performance of the processes. Then, a procedure is presented to evaluate modifications in the cogeneration system and in the process, and their impact on the production costs of sugar, ethanol and electricity. Furthermore, a discussion on the renewability of processes is made based on an exergy index of renewability. As a general conclusion, besides adding a new revenue to the mill, the generation of excess electricity improves the exergo-environmental performance of the mill as a whole. (C) 2010 Elsevier Ltd. All rights reserved.

Integrating environmental and economic life cycle analysis in product development: a material selection case study

Purpose Achieving sustainability by rethinking products, services and strategies is an enormous challenge currently laid upon the economic sector, in which materials selection plays a critical role. In this context, the present work describes an environmental and economic life cycle analysis of a structural product, comparing two possible material alternatives. The product chosen is a storage tank, presently manufactured in stainless steel (SST) or in a glass fibre reinforced polymer composite (CST). The overall goal of the study is to identify environmental and economic strong and weak points related to the life cycle of the two material alternatives. The consequential win-win or trade-off situations will be identified via a Life Cycle Assessment/Life Cycle Costing (LCA/LCC) integrated model. Methods The LCA/LCC integrated model used consists in applying the LCA methodology to the product system, incorporating, in parallel, its results into the LCC study, namely those of the Life Cycle Inventory (LCI) and the Life Cycle Impact Assessment (LCIA). Results In both the SST and CST systems the most significant life cycle phase is the raw materials production, in which the most significant environmental burdens correspond to the Fossil fuels and Respiratory inorganics categories. The LCA/LCC integrated analysis shows that the CST has globally a preferable environmental and economic profile, as its impacts are lower than those of the SST in all life cycle stages. Both the internal and external costs are lower, the former resulting mainly from the composite material being significantly less expensive than stainless steel. This therefore represents a full win-win situation. As a consequence, the study clearly indicates that using a thermoset composite material to manufacture storage tanks is environmentally and economically desirable. However, it was also evident that the environmental performance of the CST could be improved by altering its End-of-Life stage. Conclusions The results of the present work provide enlightening insights into the synergies between the environmental and the economic performance of a structural product made with alternative materials. Further, they provide conclusive evidence to support the integration of environmental and economic life cycle analysis in the product development processes of a manufacturing company, or in some cases even in its procurement practices.

The quest for a sustainable product: An environmental study of tyre recyclates

The main objective of the present study is to assess the environmental advantages of substituting aluminium for a polymer composite in the manufacture of a structural product (a frame to be used as a support for solar panels). The composite was made of polypropylene and a recycled tyres’ rubber granulate. Analysis of different composite formulations was performed, to assess the variation of the environmental impact with the percentage of rubber granulate incorporation. The results demonstrate that the decision on which of the two systems (aluminium or composite) has the best life cycle performance is strongly dependent on the End-of Life (EoL) stage of the composite frame. When the EoL is deposition in a landfill, the aluminium frame performs globally better than its composite counterpart. However, when it is incineration with energy recovery or recycling, the composite frame is environmentally preferable. The raw material production stage was found to be responsible for most of the impacts in the two frame systems. In that context, it was shown that various benefits can accrue in several environmental impact categories by recycling rubber tyres and using the resulting materials. This is in a significant part also due to the recycling of the steel in the tyres. The present work illustrates how it is possible to minimize the overall environmental impact of consumer products through the adequate selection of their constitutive materials in the design stage. Additionally it demonstrates how an adequate EoL planning can be an important issue when developing a sustainable product, since it can highly influence its overall life cycle performance.

A relação entre a performance ambiental e a performance financeira das empresas

This study examines the relationship between the environmental performance and the financial performance of Portuguese corporations, based on a sample of 35 stocks listed in the Euronext Lisbon stock exchange, for the period from 2000 to 2004. Corporate environmental performance is measured by an analysis of the environmental information disclosed in 2003 corporate annual financial reports. Stock market-based measures, such as return, risk and risk-adjusted return measures, are used to evaluate corporate financial performance, for the 5 years observation period. We use the portfolio studies and contingency tables methodology to evaluate the relationship between corporate environmental disclosures and corporate stock market performance. The empirical results suggest that companies that do not disclose environmental information have a superior financial performance – as measured by return, risk and risk-adjusted return – than those that disclose environmental information. In particular, companies with better environmental reporting, which disclose qualitative and quantitative environmental information, are the ones with worse financial performance. Nevertheless the differences found in financial performance are not statistically significant. The empirical results are thus adverse to the more recent view of environmental performance as a competitive advantage, maybe due to the still relatively small importance of environmental issues to companies and investors.

Environmental pressures and impacts of public sector organizations: the case of the Portuguese Military

Progress in Industrial Ecology, An International Journal, nº 4(5), p. 363-381

Environmental impact assessment in higher education and training in Portugal

Journal of Cleaner Production, nº 16, p. 639-645

Comparative environmental life-cycle analysis of concretes using biomass and coal fly ashes as partial cement replacement material

Nowadays, the concrete production sector is challenged by attempts to minimize the usage of raw materials and energy consumption, as well as by environmental concerns. Therefore, it is necessary to choose better options, e.g. new technologies or materials with improved life-cycle performance. One solution for using resources in an efficient manner is to close the materials' loop through the recycling of materials that result either from the end-of-life of products or from being the by-product of an industrial process. It is well known that the production of Portland cement, one of the materials most used in the construction sector, has a significant contribution to the environmental impacts, mainly related with carbon dioxide emission. Therefore, the study and utilization of by-products or wastes usable as cement replacement in concrete can supply more sustainable options, provided that these type of concrete produced has same durability and equivalent quality properties as standard concrete. This work studied the environmental benefits of incorporating different percentages of two types of fly ashes that can be used in concrete as cement replacement. These ashes are waste products of power and heat production sectors using coal or biomass as fuels. The results showed that both ashes provide a benefit for the concrete production both in terms of environmental impact minimization and a better environmental performance through an increase in cement replacement. It is possible to verify that the incorporation of fly ashes is a sustainable option for cement substitution and a possible path to improve the environmental performance of the concrete industry.

Environmental management systems implementation

All organisations make some contribution to the degradation of the environment through their use of resources and production of waste. Environmental management systems (EMS) standards can provide a tool for companies to systematically reduce their environmental impacts. ISO 14001 was published in 1996. This fitted in with plans of the case study company to take proactive action in this area, even though there was no legislative requirement for them to do so. As EMS implementation was a new area at the time, appropriate methodologies were developed to address different aspects of the implementation, and ISO 14001 was successfully implemented in the company. The results of the primary research included: ♦ Drawing up a methodology for identifying and interpreting the environmental legislation that may have an impact on the organisation and compiling a register of such regulations. ♦ Developing a robust methodology for assessing significant environmental aspects and impacts and applying this to the software company. ♦ Establishing objectives and targets for those aspects identified as significant and implementing environmental management programmes to meet these. ♦ Developing an internal environmental audit procedure based on auditing against the significant aspects. ♦ Integrating areas of the EMS with the existing quality management system in order to avoid duplication of effort. ♦ Undergoing an external assessment process in order to achieve certification of the system. The thesis concludes that the systematic approach defined in ISO 14001 provided a mechanism that the organisation was able to adopt to bring about improvement in its environmental performance. The system was based on a thorough evaluation of the organisation's significant environmental aspects in order to bring about a reduction in its negative impacts. The ISO 14001 requirement for continual improvement is the key driver of the system, and this is what differentiates it from ISO 9000.