CSR Research: Environmental Sustainability

RESEARCH BRIEF - Both internal and external stakeholder pressure prompts company leadership to make changes to environmentally sustainable practices. Internal stakeholders—such as employees—tend to expect their companies to integrate environmental practices into internal decision-making, while external stakeholders—such as communities and unions—look for transparent communication about environmental efforts.

RESEARCH BRIEF - When tracking environmental sustainability indicators reported to CDP, this research determines that companies should set ambitious, absolute targets and use long-term timelines in order to achieve lower GHG emissions.

RESEARCH BRIEF - Pro-environmental communications can be used to influence customer behavior, even when they say they do not recall having seen or been exposed to such communications. To make a long-term impact on customer behavior, companies should use ongoing and repeated environmental messaging.

RESEARCH BRIEF - An investment in environmental sustainability leads to a better bottom line. Lower greenhouse gas (GHG) emissions and greater environmental disclosure results in stronger financial performance, as measured by Tobin’s Q.

RESEARCH BRIEF - Firms that reduce their environmental impacts—through lower carbon emissions and formal environmental management systems—increase consumer demand and productivity.

RESEARCH BRIEF - Environmental management systems are effective in lowering a firm’s carbon emissions, and become more valuable the longer they are in place.

RESEARCH BRIEF - To maximize short- and long-term financial performance, companies investing in environmental initiatives should communicate their efforts with stakeholders more frequently.

RESEARCH BRIEF - Companies with slack resources should consider investing in environmental efforts: These investments result in stronger environmental performance in the short term—and stronger financial performance in the long term.

RESEARCH BRIEF - Firms that experience significant stakeholder pressure about environmental performance are more likely to develop and implement environmental protection strategies and succeed in reducing greenhouse gas (GHG) emissions.

RESEARCH BRIEF -Companies that adopt environmental management systems (EMS) and formally engage with key stakeholders—such as suppliers, customers, and the community—are more likely to develop environmental product innovations.

RESEARCH BRIEF - Media releases of new information related to a firm’s planned pro-environmental practices can positively impact a company’s stock price

RESEARCH BRIEF - Companies that reduce carbon dioxide (CO2) output enjoy better financial performance.