UTICAJ GHG EMISIJA NA FINANSIJSKE PERFORMANSE PREDUZEĆA

Abstract

Global efforts toward decarbonization and current environmental regulations are encouraging companies to analyze the relationship between environmental responsibility and financial performance. Therefore, this paper investigates the impact of GHG emissions on the financial performance of chemical industry companies in Europe. The research was done on a sample of 50 companies of five European countries, Germany, Belgium, the Netherlands, the United Kingdom, and Norway, in the period from 2016 to 2020. CO2 emission intensity was used as an indicator of GHG emissions, while financial performance was measured by return on assets (ROA) and return on equity (ROE). By applying panel regression analysis, it was determined that CO2 emission intensity has a statistically significant and negative impact on ROA, whereas no statistically significant impact on ROE was confirmed. The obtained results indicate that companies with higher levels of CO2 emissions record weaker financial performance, which represents an additional financial incentive for active emission management and investment in the decarbonization of business processes. Considering that Serbia aims to harmonize its environmental policies with EU standards, the research findings may serve as a basis for policymakers and the management of Serbian companies in adopting measures and incentives aimed at reducing CO2 emissions and improving financial performance.