Does sustainability matter for Fintech firms? Evidence from United States firms

Purpose This study aims to look at how financial technology (FinTech) companies adhere to sustainable standards in contrast to their counterparts. Following the validation of its new sustainability index, this study looks into the impact of sustainability on the stock performance of FinTech companies. Design/methodology/approach To efficiently test the hypotheses, sample has been collected from the Bloomberg of all FinTech and non-FinTech companies from the USA. The final sample comprises 1,712 company-year observations over the investigation period 2010–2019. The methodology entails ordinary least squares regressions and generalized panel methods of moments (GMM). Findings The results suggest that the developed sustainability index is a valid proxy for sustainability measures and directly relates to stock performance. Besides, the evidence indicates that non-FinTech companies display superior sustainability and stock performance compared to FinTech companies. The present results corroborate with stakeholder theory, which implies that quality sustainability performance will alleviate the agency issue and safeguard the shareholders’ interest. Research limitations/implications Despite the fact that it presents the limitation of not considering other dimensions of financial performance, this research is important as it highlights the sustainability practices by the FinTech and non-FinTech companies, offering insights to researchers, policymakers, regulators, financial reports users, investors, environmental union, employees, clients and society. Originality/value This paper is novel because it is unique in evaluating the sustainability practices in FinTech and non-FinTech firms.

Corporate governance and extent of corporate sustainability practice: the role of investor activism

Purpose Following the unceasing pressure on companies to adopt sustainable business practices to mitigate climate effect, this study aims to examine corporate governance (CG) attributes and role of activist investors in influencing extensive sustainability practice for firms in the developed and emerging climes. Design/methodology/approach Using a panel ordered probit regression analysis for 368 companies over 2016 to 2019, the study examined CG attributes that drive extensive corporate sustainability practice. The study addressed endogeneity bias using STATA Extended panel ordered probit regression model with endogenous covariates. Findings The result showed CG attributes is critical for firms, and activist investors play a critical role in driving extensive sustainability practice. Findings further reveal the extent of adoption is relatively low in the emerging climes but showed sign of improvement over the years examined. Research limitations/implications The study focused mainly on larger firms operating in different sectors globally. Hence, findings cannot be generalized for small sized entities. Practical implications The study provides an insightful explanation regarding the extensive sustainability practices and the vital role assumed by activist investors. Social implications The increasing number of companies responding to Carbon Disclosure Project and consequent improvement in scores indicates a corporate commitment to ensuring a sustainable future. Originality/value This research offers significant insights to the extent discussion on attributes of CG critical for sustainability practice. The findings ascertain useful tools to aid the continued adoption of sound sustainability practices around the globe.

Assessing International Sport Federations' Sustainability Practices: Toward Integrating Sustainability in Their Main Sports Events

Research Question: Sustainability has become a pressing issue for a wide range of organizations, including sports' world governing bodies. This paper examines (1) how sustainability can be defined in the context of international sport federations and (2) how international federations implement social and environmental sustainability practices. We used an eight-dimensional analytical framework to analyze multiple case studies and drew on neo-institutional theory to interpret the recent changes international federations have made with regard to sustainability.Research Methods: Our methodology combined a multiple case study with analyses of official documents and in-depth semi-structured interviews.Results and Findings: Our six case studies revealed five approaches to sustainability: (a) implementing sustainability pilot events; (b) partnering with NGOs; (c) partnering with sustainability consultancies; (d) creating a sustainability committee; and (e) launching a comprehensive sustainability strategy with at least a full-time sustainability manager.Implications: In terms of theory, examining our data through the lens of neo-institutional theory provides insights into international federations' recent sustainability behaviors. Our findings enabled us to draw up a “sustainability ladder” of sport federations' responsibilities, which can be used to assess the degree to which they have embraced sustainability. In practical terms, our findings should encourage more sport federations to take concrete steps to improve their sustainability by implementing the five approaches.

Sustainability Recommendations and Practices in School Feeding: A Systematic Review

Considering the importance of schools for sustainable food offers and the formation of conscientious citizens on sustainability, this systematic review aimed to verify the recommendations on sustainability in school feeding policies and the sustainability practices adopted in schools. The research question that guided this study is “what are the recommendations on sustainability in school feeding policies and the sustainability practices adopted in schools?”. This systematic review was prepared according to PRISMA, and its checklist was registered in PROSPERO. Specific search strategies for Scopus, Web of Science, Pubmed, Lilacs, Google Scholar, and ProQuest Dissertations & Theses Global were developed. The included studies’ methodological quality was evaluated using the Meta-Analysis Statistical Assessment and Review Instrument (MASTARI). A total of 134 studies were selected for a full reading. Of these, 50 met the eligibility criteria and were included in the systematic review. Several sustainability practices were described. The most cited are school gardens and education activities for sustainability. However, actions carried out in food services were also mentioned, from the planning of menus and the purchase of raw materials (mainly local and organic foods, vegetarian/vegan menus) to the distribution of meals (reduction of organic and inorganic waste: composting, recycling, donating food, and portion sizes). Recommendations for purchasing sustainable food (organic, local, and seasonal), nutrition education focused on sustainability, and reducing food waste were frequent; this reinforces the need to stimulate managers’ view, in their most varied spheres, for the priority that should be given to this theme, so that education for sustainability is universally part of the curricula. The importance of education in enabling individuals to promote sustainable development is reaffirmed in Sustainable Development Goal 4 (SDG 4). The development of assessment instruments can help monitor the evolution of sustainable strategies at schools and the main barriers and potentialities related to their implementation.

From a Financial to an Entity Model of ESG

ESG investing evolved over time from the earlier concept of CSR. The process of evolution moved the focus from the external impact of corporate activities to the risk and return implications for financial investors of failing to address ESG issues in their portfolio selection and corporate engagement. The bridge between the two approaches was the framing of sustainability in the early part of the millennium as an overarching concept that could be mapped onto the supply of capital and the techniques employed by institutional investors. The financial model of ESG investing is now the standard approach around the world and is reflected in ESG ratings, codes, guidance and regulatory rules. It focuses on the role of capital and investors in driving change in sustainability practices and pays much less attention to the role of board decision-making and directors’ fiduciary duties. In this research, we trace the origins and trajectory of this change in emphasis from CSR to ESG and attempt to explain why it occurred. We identify shortcomings in the financial model of ESG investing and propose an alternative ‘entity’ model, which we argue would more effectively promote sustainability in the corporate sector around the world.

Technological achievement in the food industry in Malaysia

Issues pertaining to food sustainability have long been debated in developing countries. Food sustainability practices benefit the environment, societies and economies, yet in Malaysia food production and management are still lagging in sustainability practices. The food industry needs to explore new methods in food production because of population increase, peoples’ lifestyle, demand for healthy foods, and environmental concerns. For this reason, this review paper discussed technological achievements in the food industry to help food producers improve production. It is crucial for Malaysia to ensure sustainability in food production technology in the 12th Economic Planning Unit (EPU) projection for 2021-2025. The EPU aims to restructure and empower the existing industry. This paper discussed the food technology sub-sector focusing on agriculture and livestock in Malaysia. This focus hopes to boost existing government strategies and improve food producers’ business performance following the EPU. Here, this paper highlights the government’s involvement in technology application to help farmers’ access affordable technology via research assistance from the government.

How Green Is Their Latte Now?

This chapter investigates whether sustainability practices of one of the leaders of the coffee industry, Starbucks, have changed during the COVID-19 pandemic as compared to the period before the virus outbreak. In particular, the authors ask which dimensions, or sub-dimensions, of sustainability in particular have been cut off first. Secondary data in the form of industry and company reports, websites, as well as research articles has been used. The findings of this study are particularly important for practitioners and researchers interested in changes in the coffee market, corporate sustainability, and consumer behavior, particularly during a systemic crisis, such as the COVID-19 pandemic. The topic is very current, and high-quality interdisciplinary research on a continuously deepening crisis with an unknown expiration date promises value-added potential, much more than “filling a gap” in the literature.