Company sustainability committees can satisfy stakeholders without results, study finds

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New research suggests that a company’s market value is positively linked to climate change initiatives, but the actual outcome of sustainability measures is less important than the optics they create, blurring the line between environmental improvements and corporate greenwashing.

, which reviewed 592 firms from 35 countries that have operated between 2002 and 2019 – 17 years that saw a drastic transformation in public perception toward climate change.

The research attempted to investigate the effects of carbon reduction measures and the actual outcome of these measures amidst companies operating in various national economies. The data also considered the effects of carbon-reduction measures being moderated by company sustainability boards. “The presence of a board sustainability committee — which plays a crucial role in designing environmental initiatives and introducing best sustainability management practices — was also associated with higher greenhouse gas emissions,” read a press release.

 

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