Sustainability increasingly is of vital concern to investors and corporate leaders, but it also is a relatively recent area of academic study. At the Mendoza College of Business, faculty researchers are engaged in studying a variety of related issues ranging from how capital markets react to carbon emission disclosures, to whether “green” companies have happier workforces. Their insights will help corporations understand not only what actions they can take for more positive environmental impacts, but for better financial performance as well.
While companies are talking more about sustainability in their annual reports, their carbon emission levels aren’t matching their rhetoric—at least not yet, according to new research by Management Professor Sarv Devaraj.
A recent study by Accountancy Professor Sandra Vera-Muñoz finds that higher carbon emission levels are associated with lower firm values. The research also speaks to the increasing need for standards in financial reporting of carbon emissions, and a greater role for accountants.
Going green might not only have an environmental impact, but a human resource one as well. Management Professor Ante Glavas has found companies that integrate sustainability into operations report higher levels of employee job satisfaction and retention.