Environmental Sustainability and Financial Performance

The global imperative to address climate change has placed increasing pressure on corporations to reduce their greenhouse gas emissions and adopt more sustainable business practices (IPCC, 2022). This shift towards environmental sustainability has been particularly pronounced in the Nordic countries, which have long been at the forefront of environmental policy and corporate responsibility (Strand et al., 2015; Sievänen et al., 2017). As companies invest in green initiatives and stakeholders demand greater accountability (Flammer, 2021), a critical question emerges: What is the relationship between a firm's environmental sustainability efforts, specifically its carbon emissions performance, and its financial outcomes?
Using Scope 1-3 and financial data from Bloomberg, the study explores the link between the two amongst Nordic companies.