Examination of relationship between reported correlations between corporate environmental and financial performance ; and the review of impact of listing criteria and frameworks of sustainability stock indices

• Main Authors: Tan, Elizabeth Si En, Kwek, Xiang You, Lau, Catherine Xiao Ling
• Other Authors: School of Humanities and Social Sciences
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Social sciences::Economic theory::Microeconomics
• Online Access: http://hdl.handle.net/10356/59312
• Institution: Nanyang Technological University

The rise of eco-friendly practices amongst companies in response to wider awareness of environmental issues has also sparked a simultaneous debate on whether there is a correlation between sustainability performance and a company’s financial performance. Extensive literature reviews however yield conflicting and often contradicting findings. Stock exchanges, otherwise known as sustainability indexes have spawned from the increased resources that companies channel toward environmental issues. While the requirements and criteria of these indexes are reputably stringent in nature, we find that the bulk of their focus lies on the environmental impact from the firm’s processes and few consider the environmental impact of the firm’s product. Therefore, we recommend changes that better incorporate the concept of environmental sustainability into these requirements, enhancing further research on the impact of environmental sustainability on financial performance, while also encouraging more innovative eco-friendly investment.