Research Article Open Access

Effectiveness of Business Practices Related to Climate Change as a Driver for Improving Environmental Performance

Naciti Valeria1 and Centorrino Giovanna1
  • 1 University of Messina, Italy

Abstract

This study explores the relation between business practices related to climate change and environmental performance. Using an international sample of analysis from 2013 to 2017, the paper examines how managerial incentives, public policy, disclosure and responsibilities to executives on climate change, as corporate governance factors, affect a firm's environmental performance. By employing several regression analyses, our independent variables-incentives, public policy, disclosure and responsibilities-show to improve the environmental performance in terms of reduction of GHG emissions. In addition, results show that stakeholders’ engagement seems less relevant in the US with respect to other countries, this could be related to the US public opinion which exerts lower pressures on companies to deal with climate change. This study contributes to the environmental governance literature, where the impact of governance practices in environmental problem solving has not been widely studied.

American Journal of Applied Sciences
Volume 19 No. 1, 2022, 21-33

DOI: https://doi.org/10.3844/ajassp.2022.21.33

Submitted On: 17 October 2021 Published On: 7 February 2022

How to Cite: Valeria, N. & Giovanna, C. (2022). Effectiveness of Business Practices Related to Climate Change as a Driver for Improving Environmental Performance. American Journal of Applied Sciences, 19(1), 21-33. https://doi.org/10.3844/ajassp.2022.21.33

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Keywords

  • Corporate Governance
  • Sustainable Development
  • Environmental Performance
  • Climate Change