In my PhD thesis I investigate the relationship between corporates' financial and environmental performances. The concept of quantitative environmental performance measures was introduced to enable to compare and analyse environmental impacts of different socio­economic units e.g. companies, countries, regions. In my dissertation, I use environmental performance measures to examine their effect on the financial performance of different companies. In the first chapter, I apply a meta­analysis to examine the results of the previous studies which investigate the impact of firms' environmental performance on their financial performance. The outcomes propose that it is important to account for the omitted variable bias such as unobserved firm heterogeneity. The results suggest that it takes time for the environmental regulation to materialize into the financial performance, too. In the subsequent two chapters I study Czech firms over 2004­2008. First I study the intertemporal effects of corporates' environmental performance on financial ...

Frågor kopplade till ekologisk hållbarhet i företagssammanhang (både i forskning och inom företagsvärlden) har historiskt inte haft speciellt mycket gemensamt med forskning om ekosystem och miljöprocesser. Styrning av affärsverksamhet för att uppnå ekologisk hållbarhet är typiskt fokuserad på linjära företags eller industri-specifika miljöproblem. Forskningen om ekosystem och miljöprocesser har antagit ett holistiskt perspektiv på miljöproblemen vilket erkänner icke-linjära karaktärsdrag i ekosystemens svar på mänsklighetens avtryck i form av miljöförstörande aktiviteter. Denna studie försöker bringa dessa två skilda tillvägagångsätt tillsammans genom att applicera ett holistiskt perspektiv på ekologisk hållbarhet i företagssammanhang. Detta testas genom att undersöka om hur den konceptuella modellen ’planetära gränser’ kan användas i företag för att stödja företagens arbete med ekologisk hållbarhet. Genom tre analytiska och åtta relaterade empiriska frågeställningar söker denna studie svaret på frågan ifall ramverket ’planetära gränser’ är ett lämpligt verktyg för att förbättra företags prestationer inom ekologisk hållbarhet. En fallstudie på företaget ’Sandvik Materials Technology’ som inkluderar intervjuer med nyckelpersoner och en analys av deras verksamhet och processer utifrån perspektivet ’planetära gränser’, samt en strukturerad litteraturstudie har genomförts för att svara på verktygets lämplighet för applicering i företagsverksamhet. Från litteraturstudien konstateras att föreslagna metoder för implementering på andra nivåer än den globala typiskt inkluderar en kombination av ramverket ’planetära gränser’ med ett annat verktyg. Totalt fann litteraturstudien nio föreslagna kombinationer varav tre var testade i fallstudieformat på regional och nationell nivå. Sex kombinationer inkluderar metoder för att skala ner planetära gränser till andra nivåer än den globala. Implementering av ramverket i företagssammanhang kan enligt den studerade litteraturen assistera företag i deras prestationer inom ekologisk hållbarhet genom att användas för prioritering bland miljöproblem. Vidare har ramverket beskrivits som ett starkt utvärderingsverktyg för externa intressenter.  Intervjuerna visade en skepticism mot verktygets möjligheter att förbättra Sandvik Materials Technologys prestationer på (ekologisk) hållbarhetsområdet. Intervjupersonerna tyckte förvisso att det var viktigt att luta sig mot vetenskapen för att ta fram miljömål, men inte bara. Miljömål på företag måste också ta hänsyn till kostnadseffektivitet och/eller affärsmöjligheter. Sandvik Materials Technology´s verksamhet och processer lämpar sig dock väl för en analys utifrån perspektivet ’planetära gränser’ då kopplingar kunde fastställas för alla gränser. Jämfört med företagets nuvarande miljö och klimatstrategi visade analysen utifrån ’planetära gränser’ på några fler möjliga fokusområden (t.ex. biologisk mångfald och påverkan på biokemiska flöden) medans andra förblev desamma (klimatförändringar och vattenanvändning). Det nuvarande huvudfokusområdet, resursanvändning inkluderas dock inte på ngt annat sätt än möjligtvis indirekt. En fullskalig kvantitativ implementering av ramverket ’planetära gränser’ kräver på grund av avsaknaden av robusta metoder starkt engagemang där det ska genomföras. Detta engagemang bedöms saknas på Sandvik Materials Technology, därför konstateras att verktyget ensamt idag inte är moget för implementering på detta företag. / The question investigated in this study is whether the framework ‘planetary boundaries’ can be a suitable tool for improving sustainability performance at companies or not. It does so by investigating three analytical and eight related empirical questions. The methods in this study include; a structural literature review, qualitative interviews with key players at the focal company Sandvik Materials Technology and a qualitative analysis of the steel industry and Sandvik Materials Technology’s relationship to planetary boundaries. From the literature study, it was concluded that as for now, methods for applying the planetary boundary framework lack in maturity. It does not follow from this that there is no scientific relevance in developing methods for application, but more research is needed to confirm a methodological framework for application which is suitable for companies. The interviews revealed a skeptical attitude towards the framework´s ability to improve Sandvik Materials Technology´s sustainability performance. To derive environmental targets from science was viewed as a necessity, however environmental targets in companies must take other aspects (e.g. cost-effectiveness and business opportunity) into account as well.   The qualitative Planetary Boundaries analysis showed that the activities and processes at Sandvik Materials Technology is well suited for an environmental assessment based on a planetary boundaries perspective. Some focus areas remained the same as in their current environmental strategy (e.g. climate change and fresh water abstraction) but others (biosphere integrity and biochemical flows) appeared as new possible focus areas. Sandvik Materials Technology´s main focus, resource use, were however excluded from an environmental assessment based on a planetary boundaries perspective. Due to the lack of mature methods, an implementation of the framework at a company requires a strong commitment at the company. The researcher concludes that such level of commitment is lacking at Sandvik Materials Technology. Therefore, this study reaches the conclusion that the planetary boundary framework is, at least for now, not alone a suitable tool for improving sustainability performance at the focal company Sandvik Materials Technology.

Production of muesli is an energy intensive process which consumes enormous amount of energy invarious forms. In this study, energy flow accounting tool has been employed which is a valuable tool for mapping and quantifying the energy flows within a specific system such as a nation, city or factory. Thistool aids in highlighting the pathways of energy throughout the system and identifies the sources ofenergy loss. Furthermore, to support identification and assessment of CP measures the energy flowaccounting method was integrated within the CP assessment methodology framework. Energy balance established with the help of energy flow accounting method, also highlights different energy inflows andoutflows in the process such as steam, oil, gas and raw material. The utmost energy consuming subprocesses in muesli production are cleaning, rolling, air blowers, husk removal, extruder and mothermachine. Since Läntmannen Cerealia at Järna generates steam, hot water and district heating from removed husk, along with recovering the steam loss in form of condensate, the overall efficiency of their system is approximately 90%. Moreover, an attempt to establish extensive energy balance at the plant has not been undertaken. This factor serves as the stimulus for the study project as it promises futurework in this domain. This comprehensive report demonstrates a nearly accurate picture of the energybalance of muesli production at Läntmannen Cerealia. The energy losses in different manifestation ofenergy during various sub processes have also been presented in the report. Additionally, suggestions for improvement have been furnished to reduce the energy losses during the process of production. However, feasibility analysis is recommended before the implementations of these measures. Implementation of the aforementioned measures could potentially decrease the energy losses in production of muesli and can boost the environmental performance of the entire process.

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The concept of efficiency measurement is based on the definition of a frontier that envelopes observed production plans. The effect of pollution on productive efficiency is typically studied by considering pollution as not freely disposable (i.e., there is a cost incurred to dispose of pollution) or by assigning shadow prices to pollution outputs. However, the frontier along with the required technological assumptions (such as convexity) needed for a definition of a frontier may be replaced with the concept of pair-wise dominance. With data from a manufacturing facility, the use of pair-wise dominance allows one to consider a wide spectrum of inputs and outputs. Pair-wise dominance can also be applied to segregate production plans into sets according to their relative environmental performance and productive efficiency. These sets are used to identify reference production plans upon which distance-based measures of performance are defined. This research applies pair-wise dominance to time series data from a printed circuit board manufacturing facility to illustrate the approach. The proposed approach is compared to the Data Envelopment Analysis (DEA) approach. It was observed that for detailed production data the proposed approach was more informative concerning the measurement of productive efficiency than the standard methods. / Ph. D.

The large environmental issues that are confronting modern society underscore that a critical shift is needed and there is an increasing demand for sustainable solutions to tackle these challenges. Agenda 2030 for sustainable development, outlined by the United Nations, encompasses 17 universal goals and 169 transformative targets that address the global challenges and emphasise the urgency of environmental degradation. In addressing the substantial environmental challenges, radical solutions are needed where eco-innovations will play a pivotal role. Eco-innovations are characterized by novelty and often new to the market, representing a risky and costly activity for companies. Managing environmental and financial performance becomes complex where addressing both goals simultaneously becomes conflicting.      To address the identified research gap the purpose of this study is to analyse how companies manage environmental and financial performance in eco-innovation, especially early in the innovation process. Conflicting perspectives and scattered research underscore the need for a nuanced understanding of how companies manage the tensions inherent in financial and environmental performance in eco-innovation. Paradox theory served as a theoretical lens to gain a deeper understanding of how companies manage the conflicting perspectives that can arise when balancing environmental and financial performance simultaneously. To address the research question and understand the complex interplay that organisations working with eco-innovation are facing, a qualitative method with an inductive approach was chosen. Semi-structured interviews were held with companies mainly working on reducing environmental impact through innovative activities.  The data collected from the semi-structured interviews were analysed through thematic analysis, it resulted in two main strategies that companies use to balance environmental and financial performance in eco-innovation: (1) Buying time through money (2) Future-proof customer demand which we interpret with the resolution strategy from paradox theory. The result indicated that companies that are buying time through money are facing a tension between saving the budget or saving the planet. The tension arises from the absence of strict regulations resulting in a market where demand is lacking and is not yet ready to embrace the radical eco-innovation. This time gap resulting in a lack of demand and our findings indicated that companies are handling this time gap by finding external resources until the market is ready which is coherent with a separation strategy from paradox theory.   The second strategy of future-proof customer demand indicates that companies are facing tension between being commercial or being sustainable. Companies are facing a mature market with price sensitive customers, suffering from fear of regulations and regulations that are not fit for purpose. The solution is to secure sales with an end-customer to reduce the financial uncertainty to be able to balance environmental and financial performance early in the innovation process before (if at all) the innovation starts generating profit. This aligns with a synthesis strategy from paradox theory.

There has been a recurring debate on whether or not environmental regulations indirectly affect a firm's cost structure by motivating it to engage in technological innovation. Accordingly, innovation would eventually play a key role in a firm's market competitiveness or profitability. The Porter hypothesis therefore presents an interesting paradigm that through regulatory impetus, firms can be motivated to pursue innovation and strengthen it's market performance. However, opponents of the Porter hypothesis argue that increasing the stringency of regulations does not necessarily equate to greater profitability. This paper tests the Porter hypothesis by using an augmented version of Repetto's model. The empirical results show that while the sign of the correlation coefficients tend to validate those of the Porter hypothesis, the association between environmental and economic performance is either subject to a spurious correlation problem when they are significant or is insignificant even when the effects of extraneous variables are netted out. / Master of Arts

This research investigates the environment and development issues of three stakeholders at multiple scales—global, national, regional, and local. Through the analysis of financial, social, and environmental metrics, the potential benefits and risks of each case study are estimated, and their implications are considered. In the first case study, the relationship of manufacturing and environmental performance is investigated. Over 700 facilities of a global manufacturer that produce 11 products on six continents were investigated to understand global variations and determinants of environmental performance. Water, energy, carbon dioxide emissions, and production data from these facilities were analyzed to assess environmental performance; the relationship of production composition at the individual firm and environmental performance were investigated. Location-independent environmental performance metrics were combined to provide both global and local measures of environmental performance. These models were extended to estimate future water use, energy use, and greenhouse gas emissions considering potential demand shifts. Natural resource depletion risks were investigated, and mitigation strategies related to vulnerabilities and exposure were discussed. The case study demonstrated how data from multiple facilities can be used to characterize the variability amongst facilities and to preview how changes in production may affect overall corporate environmental metrics. The developed framework adds a new approach to account for environmental performance and degradation as well as assess potential risk in locations where climate change may affect the availability of production resources (i.e., water and energy) and thus, is a tool for understanding risk and maintaining competitive advantage. The second case study was designed to address the issue of delivering affordable and sustainable energy. Energy pricing was evaluated by modeling individual energy consumption behaviors. This analysis simulated a heterogeneous set of residential households in both the urban and rural environments in order to understand demand shifts in the residential energy end-use sector due to the effects of electricity pricing. An agent-based model (ABM) was created to investigate the interactions of energy policy and individual household behaviors; the model incorporated empirical data on beliefs and perceptions of energy. The environmental beliefs, energy pricing grievances, and social networking dynamics were integrated into the ABM model structure. This model projected the aggregate residential sector electricity demand throughout the 30-year time period as well as distinguished the respective number of households who only use electricity, that use solely rely on indigenous fuels, and that incorporate both indigenous fuels and electricity. The model is one of the first characterizations of household electricity demand response and fuel transitions related to energy pricing at the individual household level, and is one of the first approaches to evaluating consumer grievance and rioting response to energy service delivery. The model framework is suggested as an innovative tool for energy policy analysis and can easily be revised to assist policy makers in other developing countries. In the final case study, a framework was developed for a broad cost-benefit and greenhouse gas evaluation of transit systems and their associated developments. A case study was developed of the Atlanta BeltLine. The net greenhouse gas emissions from the BeltLine light rail system will depend on the energy efficiency of the streetcars themselves, the greenhouse gas emissions from the electricity used to power the streetcars, the extent to which people use the BeltLine instead of driving personal vehicles, and the efficiency of their vehicles. The effects of ridership, residential densities, and housing mix on environmental performance were investigated and were used to estimate the overall system efficacy. The range of the net present value of this system was estimated considering health, congestion, per capita greenhouse gas emissions, and societal costs and benefits on a time-varying scale as well as considering the construction and operational costs. The 95% confidence interval was found with a range bounded by a potential loss of $860 million and a benefit of $2.3 billion; the mean net present value was $610 million. It is estimated that the system will generate a savings of $220 per ton of emitted CO2 with a 95% confidence interval bounded by a potential social cost of $86 cost per ton CO2 and a savings of $595 per ton CO2.

This thesis empirically studies the relation between corporate social responsibility (CSR) and corporate tax avoidance. Based on a sample of 3304 observations between 2002 and 2014, I find that the CSR score of companies is negatively related to their effective tax rate. This indicates that on average, responsible companies are more involved in tax avoidance activities compared to less responsible companies. This result is robust against different sets of control variables. The results of this thesis are contrary towards previous research, where most studies find a negative relation between CSR and tax avoidance. In addition, I examine how four dimensions of CSR are related to corporate tax avoidance and I find that economic performance and environmental performance are positive significant related towards tax avoidance. This indicates that shareholder and client loyalty, as well as resource and emission reduction, relate to a higher extent of corporate tax avoidance.

Eskom Holdings SOC Limited (referred to as Eskom), a public state owned company, is required to continually demonstrate environmental duty of care and report on its environmental performance. In furthering its commitment to sustainable development and in line with environmental compliance of its activities, Eskom is planning to have the Distribution Division certified against the International Organisation for Standardization (ISO) 14001:2004 environmental management system (EMS) standard by 2014. In general, management review may quickly turn into a dry review of the items on the agenda, done only to show an auditor the review was held. As such, the aim of this study was to assess the effectiveness of management reviews as one of the key continual improvement elements of the ISO 14001:2004 environmental management system within Eskom Distribution: Western Region. This research has been designed to take place in three stages. These stages are planning, execution and publication, and preparing the dissertation for marking. The research methodology included a literature study on various national and international articles and journals on EMSs that relate to environmental performance. The databases of Eskom Distribution: Western Region ‒ i.e. the management review presentation results for the 2008/09, 2009/10 and 2010/11 financial years, key significant environmental aspects for the Technical Service Centres (TSCs) and Minor/Major Engineering Works (MEW), key performance indicators (KPIs), Risk Audit System (RAS) results, and results of the external EMS audit conducted from 23–25 April 2007 were used for this research. Questionnaires were sent to the TSCs’ senior supervisors and Safety, Health, Environment and Quality (SHEQ) management. An analysis of the questionnaires completed by the TSC senior supervisors showed that all the participants have seen an improvement in environmental performance due to annual management reviews, except TSC11, who have not seen management review results. It can be concluded from the results of the SHEQ management questionnaires that an improvement (continual improvement as per the ISO 14001 requirement) was observed. The improvements were identified through improved processes, improved gap analysis, increased environmental awareness, and addressing risks. Most of the ISO 14001:2004 requirements for the management review for all financial years covered in this study were met. In terms of the objectives, targets and KPIs, Eskom Distribution: Western Region performed effectively and most of the outcomes were implemented according to the recommendations. Further, based on the external audit conducted from 23 to 25 April 2007, it is clear that Eskom Distribution: Western Region conformed to the minimum requirements of the ISO 14001:2004 EMS. Their management reviews also met all requirements of the ISO 14001:2004 relating to management review. This was proven by minutes of previous meetings that covered all the necessary issues that were audited. Thus, the existence of management reviews contributed towards ensuring that the ISO system was scrutinised and improved where it worked, and that aspects that did not work well were removed. / M. Environmental Management, North-West University, Potchefstroom Campus, 2014