<abstract xmlns="http://www.w3.org/1999/xhtml">
This study examined the relationship between Environmental Performance (EP) and Financial Performance (FP) in the European food industry. The food industry is essential for population sustenance, but the rising population and the consequent increase in food production demand have implications for climate change. The aim of this study was to determine if businesses that consume water more efficiently and have lower CO2 emission intensities might experience improved financial performance. Financial and environmental data were sourced from external databases and company reports, and both quantile regression and correlation analyses were conducted. The results reveal that various sectors within the food industry exhibit different linkages between Environmental Performance and Financial Performance. Furthermore, our findings indicate that water use efficiency can significantly influence financial performance, either positively or negatively, while CO2 emission intensity did not exhibit a definitive impact on Financial Performance.
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This study examined the relationship between Environmental Performance (EP) and Financial Performance (FP) in the European food industry. The food industry is essential for population sustenance, but the rising population and the consequent increase in food production demand have implications for climate change. The aim of this study was to determine if businesses that consume water more efficiently and have lower CO2 emission intensities might experience improved financial performance. Financial and environmental data were sourced from external databases and company reports, and both quantile regression and correlation analyses were conducted. The results reveal that various sectors within the food industry exhibit different linkages between Environmental Performance and Financial Performance. Furthermore, our findings indicate that water use efficiency can significantly influence financial performance, either positively or negatively, while CO2 emission intensity did not exhibit a definitive impact on Financial Performance.

Having a better environmental performance translates into a better financial performance: A study of the European food industry

University of Porto, Faculty of Economics

Environmental & Socio-economic Studies

This work is licensed under the Creative Commons Attribution 4.0 International License.

This study examined the relationship between Environmental Performance (EP) and Financial Performance (FP) in the European food industry. The food industry is...

Having a better environmental performance translates into a better financial performance: A study of the European food industry

Published Online: Sep 19, 2023

Page range: 1 - 13

Received: Feb 16, 2023

Accepted: Aug 18, 2023

DOI: https://doi.org/10.2478/environ-2023-0012

Keywords
Return on Assets (ROA), Return on Equity (ROE), Profit Margin, CO emissions intensity, water use efficiency, food industry, Europe

© 2023 Adriana Maria Silva Gomes et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Having a better environmental performance translates into a better financial performance: A study of the European food industry

Published Online: Sep 19, 2023

Page range: 1 - 13

Received: Feb 16, 2023

Accepted: Aug 18, 2023

DOI: https://doi.org/10.2478/environ-2023-0012

KeywordsReturn on Assets (ROA), Return on Equity (ROE), Profit Margin, CO emissions intensity, water use efficiency, food industry, Europe

© 2023 Adriana Maria Silva Gomes et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Return on Assets (ROA), Return on Equity (ROE), Profit Margin, CO emissions intensity, water use efficiency, food industry, Europe