There is widespread consensus that human activity has had a significant impact on global climatic patterns which will have important consequences for much of society. Although there has been much research on the relationship between corporate environmental performance and corporate financial performance, empirical testing of the association between proactive corporate climate-change strategies and financial (or accounting) performance is still in its infancy. Based on the logic embodied in the Natural Resource-Based View (NRBV) of the firm, firms that success fully implement strategies to lessen their effect on climate change should outperform competitors who are less proactive in such efforts. This study uses a matched-pair design to empirically demonstrate that firms with proactive climate change strategies achieved significantly higher levels of accounting performance than competitors that were less proactive, thus providing additional support for the NRBV.
Climate Change and Vulnerability to Poverty: An Empirical Investigation in Rural Indonesia
