FM - Sustainability

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Browsing FM - Sustainability by Subject "Finance"

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    Financial health of sustainable companies
    (Tritonic, 2021) Balliu, Brian
    Increasingly, companies are taking initiatives towards adopting sustainable practices to mitigate the negative social and environmental impacts that arise from their operations. To address the emerging needs of society, companies have started to change their business processes and have started releasing sustainability reports. Sustainable companies not only manufacture products that are sustainable and sourced ethically, but they also have established environmentally friendly production methods. Moreover, sustainable companies are important factors when considering the influence these companies have in fully changing the landscape of businesses' involvement and responsibility in the protection of the environment. For this study companies that were rated as the most sustainable companies for 2021 by SG Analytics and that also scored a high ESG score in the Refinitiv Eikon database. The companies were picked from different GICS industry codes to offer a better view of the financial health of companies that operate in different sectors and are subject to a different customer base. The financial reports of the selected companies were analyzed with a focus on their levels of liquidity and the financial structure to provide a clear image of how healthy these companies are from a financial perspective. Additionally, environmental considerations are provided for each company while analyzing the areas where the businesses conduct operations, with regards to challenges that might arise and impact the financial health of said companies in their future business endeavors. The study contributes to the body of knowledge in the field of corporate sustainability and corporate risk, utilizing a different methodology from the statistical studies in the field. The study employs accounting ratios and a risk management approach, analyzing the balance sheet, income statements, and cash flow statements for each company.
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    Sustainable behaviour of B Corps fashion companies during Covid-19: A quantitative economic analysis
    (Elsevier, 2022-09-14) Ferioli, Matteo; Gazzola, Patrizia; Grechi, Danieli; Vătămănescu, Elena Mădălina
    This paper investigates whether or not Italian Certified B Corps® in the fashion industry achieved levels of corporate social responsibility (CSR) and financial performance that are comparable to listed companies in the same industry during the Covid-19 pandemic. After a review of the literature concerning B Corps, CSR and the circular economy, as well as some coverage of pandemic impacts, a quantitative approach is used to analyze the data empirically. Based on the data available, the study incorporated the entire population of Italian listed companies and B Corps in the fashion industry. Moreover, this study confirms the relationship between CSR and financial performance. The availability of sustainability documents other than the required social responsibility report does not directly affect a company’s profitability, but they are necessary for the long term. The results also confirm the positive relationship between sustainability certification and higher financial performance, as the most sustainable companies were also the most profitable. Certified B Corps® declare their willingness to adopt circular economic principles to the same extent as non-certified listed companies. Moreover, the results show that consumers mainly remember the information disclosed on a company’s homepage; therefore, managers should publish more there. However, they should not underestimate the importance of their sustainability report because it is an effective social communication tool, especially in the long term. Finally, obtaining the B Corp certification will allow companies to inform stakeholders of their social responsibility and achieve higher financial results.