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The Impact of Climate Action on the Financial Performance of Food, Grocery, and Supermarket Retailers in the UK Olarewaju, Tolu; Dani, Samir; Obeng-Fosu, Collins; Olarewaju, Tayo; Jabbar, Abdul

Abstract

We examined the impact of climate action on the financial performance of eleven food, grocery, and supermarket retailers listed on the London Stock Exchange from 2013 to 2022. Our findings reveal a positive association between the climate mitigation efforts of these businesses and financial performance, particularly in terms of returns on assets (ROA). Through Ordinary Least Squares estimation, we identified that climate action practices such as renewable energy usage, waste reduction, adoption of energy-efficient technologies, eco-friendly packaging, and optimized transportation are significantly associated with the ROA of UK-based food, grocery, and supermarket retailers. This study is significant as these retailers often have extensive operations and supply chains that contribute to greenhouse gas emissions. It demonstrates that engaging in climate mitigation measures can still lead to a positive ROA.

Item Metadata

Title
The Impact of Climate Action on the Financial Performance of Food, Grocery, and Supermarket Retailers in the UK
Creator
Olarewaju, Tolu; Dani, Samir; Obeng-Fosu, Collins; Olarewaju, Tayo; Jabbar, Abdul
Publisher
Multidisciplinary Digital Publishing Institute
Date Issued
2024-02-21
Description
We examined the impact of climate action on the financial performance of eleven food, grocery, and supermarket retailers listed on the London Stock Exchange from 2013 to 2022. Our findings reveal a positive association between the climate mitigation efforts of these businesses and financial performance, particularly in terms of returns on assets (ROA). Through Ordinary Least Squares estimation, we identified that climate action practices such as renewable energy usage, waste reduction, adoption of energy-efficient technologies, eco-friendly packaging, and optimized transportation are significantly associated with the ROA of UK-based food, grocery, and supermarket retailers. This study is significant as these retailers often have extensive operations and supply chains that contribute to greenhouse gas emissions. It demonstrates that engaging in climate mitigation measures can still lead to a positive ROA.
Subject
climate action; financial performance; sustainability; climate change; enterprises; food grocery; retail
Genre
Article
Type
Text
Language
eng
Date Available
2024-04-10
Provider
Vancouver : University of British Columbia Library
Rights
CC BY 4.0
DOI
10.14288/1.0441273
URI
http://hdl.handle.net/2429/87741
Affiliation
Law, Peter A. Allard School of; Non UBC
Citation
Sustainability 16 (5): 1785 (2024)
Publisher DOI
10.3390/su16051785
Peer Review Status
Reviewed
Scholarly Level
Faculty
Rights URI
https://creativecommons.org/licenses/by/4.0/
Aggregated Source Repository
DSpace

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CC BY 4.0