TITLE:
Correlations between Corporate Climate Change Management and Financial Performance: A Case Study of Japanese Automobile Manufacturers
AUTHORS:
Miyako Enokibori, Ryuji Matsuhashi, Yoshikuni Yoshida
KEYWORDS:
Corporate Climate Change Management; Financial Analysis; Correlation Analysis; Automobile Manufacturer; Vehicle Fuel Efficiency
JOURNAL NAME:
Low Carbon Economy,
Vol.4 No.4,
December
10,
2013
ABSTRACT: Using data from a survey, we examined
actions taken by large corporations based in three countries to combat climate
change and related these actions to the corporations’ financial performance. We
analyzed the correlation between financial performance and climate change
management performance to determine the extent that climate change management
activities are a net cost or a net benefit to companies. We found that
corporate climate change management performance is generally positively
correlated with financial performance, but that the relationship differs among
countries due to national-level external factors. A case study of Japanese
automobile manufacturing companies showed that sales of a company’s fuel-efficient cars, reflecting
consumers’ awareness of
climate change, are associated with higher valuation by financial markets.