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1 – 10 of over 35000Patrícia Lacerda de Carvalho and Orleans Silva Martins
Corporate social responsibility (CSR) and corporate sustainability have gained prominence in the major capital markets. In Brazil, the São Paulo Stock Exchange (BM&FBovespa) has…
Abstract
Corporate social responsibility (CSR) and corporate sustainability have gained prominence in the major capital markets. In Brazil, the São Paulo Stock Exchange (BM&FBovespa) has created the Corporate Sustainability Index (ISE) and the Carbon Efficient Index (ICO2), responsible for indicating the performance of sustainable companies. Therefore, this study proposes to examine and compare the stock returns of the sustainability index member companies with the returns of companies out of these indexes. In this methodology we selected the two principal negotiability indexes of that market (IBOV and IBrX50), which are indexes that meet the most traded stocks of BM&FBovespa, and calculated the average daily returns of the four indexes in order to make performance comparisons over the period 2005–2014, based on nonparametric statistical tests. Our findings indicate that the average returns of sustainability indexes were higher, but these differences were not statistically significant, confirming previous evidence. Additionally, by means of a cointegration test, we found that the indexes are cointegrated in the long term. These findings are limited to the analyzed emerging market and are also subject to the limitations of the estimated models. Thus, we can infer that presence in the sustainability indexes does not indicate statistically significant higher returns, which means that companies with sustainable practices in Brazil are not only concerned with economic performance, but also with social, cultural, and environmental issues. The main findings are aligned with the concept of triple bottom line, even in the case of an emerging market.
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This chapter reviews recent developments in sustainability regarding cities of the world. Using the approach of a literature review, this chapter highlights sustainability…
Abstract
This chapter reviews recent developments in sustainability regarding cities of the world. Using the approach of a literature review, this chapter highlights sustainability innovations in the context of cities. The chapter identifies several indexes which assess quality of life (QOL) or prosperity in cities of the world. One web-based index which relies heavily on the inputs of citizens around the world is Numbeo. The literature review identifies ways cities have pursued climate change mitigation through encouragement of electrical vehicles and alternative modes of transportation. Innovations that have become controversial in cities are also identified. Analysis of Numbeo suggests this index shows promise of future value for researchers interested in city QOL—specifically its pollution perceptions index. As urbanization continues with more than half of the world's population now residing in cities, interest in the sustainability of cities will intensify. Sustainability indexes for cities are now being developed. Analysis of Numbeo's novel approach to gauging the pollution of cities through the reports of hundreds of thousands of individuals living around the world suggests that this approach holds promise for future development. While other disciplines have taken focus on city sustainability, this is the first study within the domain of marketing research to provide an overview of city sustainability for marketing researchers and to analyze a new way of measuring a component of city QOL—perceptions of city pollution. Results suggest that valuable results will likely be forthcoming as researches continue developing city sustainability measures and indexes in the future.
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Fang-Yi Lo, Wing-Keung Wong and Jessica Geovani
The authors aim to obtain the optimal combinations of factors from institutional environment adaptation mechanisms and internal resources or capabilities that influence the…
Abstract
Purpose
The authors aim to obtain the optimal combinations of factors from institutional environment adaptation mechanisms and internal resources or capabilities that influence the sustainability of a firm.
Design/methodology/approach
The authors develop a new index, called the sustainability index, based on the stakeholder perspective by employing a corporate credit risk index, an evaluation of a firm's corporate governance, corporate financial performance and firm age. The authors then apply both Ordinary Least Squares (OLS) Regression Analysis and Fuzzy set Qualitative Comparative Analysis (FsQCA) to obtain the optimal models for firms' sustainability.
Findings
The OLS analysis shows that the variables including financial leverage, slack, innovation capability, manufacturing capability and human capital that have significant influences on the sustainability of firms. Our FsQCA analysis obtains configurations of several solutions for firm sustainability and concludes that the fit of combinations of institutional factors and/or internal resources and capabilities of a firm is related to its sustainability.
Research limitations/implications
The limitations in our new index include these: first, one may add more key metrics to measure the index; second, the findings do not provide any necessary nor a sufficient condition to get sustainability for sure. The limitations of using multiple regression analysis are that it is not able to reveal the combinations of causal conditions that can lead to the outcome in the real world as well as to the sustainability of a firm in our study. To overcome the limitations, the authors apply fsQCA analysis to identify combinations of causal conditions to a firm's sustainability in our study.
Practical implications
Introducing the sustainability index enables us to find out all factors influencing the sustainability of a firm. The authors’ analysis can be used to identify combinations of causal conditions to lead to outcomes in the real world. Their analysis enables managers to know how to predict the sustainability of the firm. For example, the authors’ fsQCA analysis shows that low marketing capability will lead to the high sustainability of the firm. This information helps managers to make the decision or plan to achieve good results toward their businesses and get better allocate their resources and get a better investment.
Social implications
The authors’ analysis can be used to identify combinations of causal conditions to lead to outcomes in the real world and enable managers to know how to predict the sustainability of the firm. A correct prediction can assist companies in developing their future operations, which would enhance their competitiveness vis-à-vis rivals during this time of global economic volatility, which, in turn, enables firms to perform better and employ more employees that could help the entire society.
Originality/value
The sustainability index the authors developed in our paper is new in the literature and the findings obtained by both OLS Regression Analysis and FsQCA are new in predicting a firm's sustainability. The authors’ findings are useful for academics, managers and policymakers in predicting and maintaining a firm's sustainability.
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Didem Dizdaroglu, Tan Yigitcanlar and Les Dawes
As a consequence of rapid urbanisation and globalisation, cities have become the engines of population and economic growth. Hence, natural resources in and around the cities have…
Abstract
Purpose
As a consequence of rapid urbanisation and globalisation, cities have become the engines of population and economic growth. Hence, natural resources in and around the cities have been exposed to externalities of urban development processes. This paper introduces a new sustainability assessment approach that is tested in a pilot study. The paper aims to assist policy‐makers and planners investigating the impacts of development on environmental systems, and produce effective policies for sustainable urban development.
Design/methodology/approach
The paper introduces an indicator‐based indexing model entitled “Indexing Model for the Assessment of Sustainable Urban Ecosystems” (ASSURE). The ASSURE indexing model produces a set of micro‐level environmental sustainability indices that is aimed to be used in the evaluation and monitoring of the interaction between human activities and urban ecosystems. The model is an innovative approach designed to assess the resilience of ecosystems towards impacts of current development plans and the results serve as a guide for policy‐makers to take actions towards achieving sustainability.
Findings
The indexing model has been tested in a pilot case study within the Gold Coast City, Queensland, Australia. This paper presents the methodology of the model and outlines the preliminary findings of the pilot study. The paper concludes with a discussion on the findings and recommendations put forward for future development and implementation of the model.
Originality/value
Presently, there is a few sustainability indices developed to measure the sustainability at local, regional, national and international levels. However, due to challenges in data collection difficulties and availability of local data, there is no effective assessment model at the micro‐level that the assessment of urban ecosystem sustainability accurately. The model introduced in this paper fills this gap by focusing on parcel‐scale and benchmarking the environmental performance in micro‐level.
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Saeed BinMahfouz and M. Kabir Hassan
There is a great deal of research that has been done to investigate the investment characteristics of conventional socially responsible investment portfolios compared to their…
Abstract
Purpose
There is a great deal of research that has been done to investigate the investment characteristics of conventional socially responsible investment portfolios compared to their broader conventional counterparts. However, the impact of incorporating sustainability criteria into the traditional Sharia screening process has not so far been investigated. Therefore, the study aims to give empirical evidence as to whether or not incorporating sustainability socially responsible criteria in the traditional Sharia screening process has a significant impact on the investment characteristics of the Islamic investment portfolio.
Design/methodology/approach
The paper examines the investment characteristics of four groups of investment portfolios mainly, Dow Jones Global Index, Dow Jones Sustainability World Index, Dow Jones Islamic Market World Index and Dow Jones Islamic Market Sustainability Index. To improve the robustness of the study, the analysis was carried out at different levels. First, absolute mean return and t‐test were used to examine whether the difference between the different groups of investments is statistically significant or not. Second, risk adjusted equilibrium models, both single‐index and Fama and French multi‐index, were employed. This is to control for different risk exposure and investment style bias associated with different investment portfolios examined.
Findings
The paper finds that neither the Sharia nor the sustainability screening process seems to have an adverse impact on the performance and systematic risk of the investment portfolios compared to their unrestricted conventional counterparts. Therefore, Muslim as well as socially responsible investors can choose investments that are consistent with their value systems and beliefs without being forced to sacrifice performance or expose to higher systematic risk.
Originality/value
The study contributes to the existing literature by giving new evidence on the impact of incorporating sustainability criteria into the traditional Sharia screening process that has not so far been investigated.
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Bashar Yaser Almansour, Muneer M. Alshater, Hazem Marashdeh, Mohamed Dhiaf and Osama F. Atayah
The purpose of this study is to investigate the dynamic return volatility connectedness among S&P, Dow Jones (DJ) sustainability indices and their conventional counterparts.
Abstract
Purpose
The purpose of this study is to investigate the dynamic return volatility connectedness among S&P, Dow Jones (DJ) sustainability indices and their conventional counterparts.
Design/methodology/approach
This study uses time-series daily data for 10 S&P and DJ indices over the period of December 1, 2012 to December 8, 2021. The authors divide the data into three periods; over the whole sample, pre and during the Covid-19 pandemic. The study adopts the connectedness approach developed by Diebold and Yilmaz (2014).
Findings
The results reveal a high degree of connectedness between S&P and DJ indices and their relative sustainability indices over the whole sample, pre and during the Covid-19 pandemic, indicating that the sustainability indices converge toward their conventional peers. The results further show that the conventional S&P500, S&P Euro 50 and DJWI are the main transmitters of shocks, whereas the S&P400, S&P500 and S&P50 sustainability indices are the main receivers of shocks.
Originality/value
The study provides novel insights in terms of shock transmission of S&P and DJ sustainability indices and their conventional counterparts, where there is a lack of investigation of the connectedness between indices in this field.
Practical implications
The study has significant implications for investors and portfolio managers to devise portfolio strategies to minimize risk and trace the cause, the direction and the magnitude of risk transmission among different indices. Also, the results help policymakers to manage diverse types of risks associated with S&P and DJ indices. Finally, faith-based and ethical investors would be able to predict the pairwise spillover connectedness between these indices.
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The chapter describes the recent history of Sustainability Indices in three Latin American countries: Brazil, Mexico, and Chile. In these countries, local Stock Exchanges have…
Abstract
The chapter describes the recent history of Sustainability Indices in three Latin American countries: Brazil, Mexico, and Chile. In these countries, local Stock Exchanges have been recently launching their own Sustainability Indices. This ongoing trend may indicate a particular way of addressing Socially Responsible Investment (SRI) in the region. The chapter relies on secondary data, mainly documents published by the Stock Exchanges themselves, and on some selected academic and practitioner oriented articles. All three countries present some common features. In all cases, local stock markets launched Sustainability Indices, and their composition has been publicly available from the beginning. Consequently, SRI is now developing in the region in a different way from that of developed markets. The chapter is based on secondary data only. Further research may involve interviews and surveys with different stakeholders (i.e., investors, quoted companies, public officials). The illustration of a different way of developing an SRI market may help public officials and investors from other countries, either in Latin America or elsewhere, who intend to promote SRI. There are few studies on SRI in Latin America, and comparative research between different countries in the region is still rare.
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The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between…
Abstract
The main problem addressed by this research is the current debate between the negative and positive effects of industrial clusters. This debate is a result of gaps between theoretical implications and empirical evidence in both the classical agglomeration theory and the agglomeration lifecycle theory. The purpose of this study is to propose a framework for developing an index measuring both organizational cluster involvement and organizational supply chain including the three pillars (economic, social, and environmental). Furthermore, the index acts as a quantitative predictor of the stages of the life cycle of industrial clusters. Adopting a case study methodology, the applicability of the index development framework is demonstrated. First, cross-sectional exploratory interviews are performed to locate items measuring the three pillars of organizational sustainability within Egyptian communication industry. Second, an explanatory, cross-sectional approach is applied gathering data from eight professionals related to involvement and supply chain sustainability of their organizations. Analytical hierarchical process is used for weighting and aggregating individual item metrics into two indicators (Saaty, 1980). Measuring, managing, and controlling capabilities of organization's supply chains outweighs the need to manage risks. The proposed framework aids firms within a cluster in making timely decisions about what needs addressing to improve supply chain sustainability performance. Hence, all environmental, social, and economic capabilities can be effectively monitored and controlled.
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Kai-di Liu, Duo-Gui Yang, Guoliang Yang and Zhi-Tian Zhou
This paper aims to investigate the situation and evolution of sustainability performance in China.
Abstract
Purpose
This paper aims to investigate the situation and evolution of sustainability performance in China.
Design/methodology/approach
This paper adopts the global Malmquist-Luenberger (GML) productivity index based on data envelopment analysis and Tobit regression for analysis.
Findings
The results indicate the following: China’s sustainability performance has been improving since 2005 and is closely related to the national development strategy and supportive policy; regional gaps in sustainability are a prominent problem represented by the fact that South Central China is becoming a sustainability collapse zone; interprovincial heterogeneity is evident with the varying development speed and conditions; and the level of sustainability performance has a significantly positive correlation with the urbanization rate, investment completed in the treatment of industrial pollution, government appropriation for education and per capita area of paved roads, but it has a negative correlation with the possession of private vehicles.
Originality/value
As an application, this study assessing the GML productivity index of 30 provinces in China from 2005 to 2015 and analyse the sustainability performance on three regional levels (i.e. country level, regional level and provincial level). Tobit regression is also applied to recognize the factors related to the GML index with the results taken as references for policy suggestions. The results have implications for a comprehensive understanding of China's sustainability performance and policymaking in this field.
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Graeme Newell and Muhammad Jufri Marzuki
Within the context of ESG (Environment, Social and Governance), environmental sustainability has taken on increased global importance in recent years. Similarly, real estate…
Abstract
Purpose
Within the context of ESG (Environment, Social and Governance), environmental sustainability has taken on increased global importance in recent years. Similarly, real estate investment managers in developing their global real estate investment portfolios need a fuller understanding of the ESG and environmental sustainability dimensions of these global real estate markets for more informed real estate investment decisions. Using the JLL GRETI sustainability sub-index, this paper examines the environmental sustainability transparency status of 99 global real estate markets over 2016–2020 and explores various strategic issues regarding ESG and environmental sustainability; particularly the critical issues relating to climate risk mitigation, climate resilience and zero-carbon. The current status of environmental sustainability in these 99 real estate markets is assessed, with areas for “best practice” improvement identified to the benefit of real estate investment managers; particularly the improvements needed in ESG to support real estate investment in the emerging real estate markets.
Design/methodology/approach
The JLL GRETI sustainability sub-index is analysed to examine strategic issues relating to environmental sustainability transparency. 99 real estate markets are assessed globally for a range of critical ESG issues over 2016–2020. Differences between the developed and emerging real estate markets are highlighted.
Findings
Considerable variation was seen in the ESG and environmental sustainability practices, procedures and frameworks across these 99 real estate markets. This was particularly evident amongst the emerging real estate markets. Compared to the other five dimensions for real estate market transparency, environmental sustainability was seen to be well behind these other dimensions in most markets. Progress has been made in recent years, but it has been slow and steady rather than at a dynamic level. Clearly, more is needed globally to enhance the stature of environmental sustainability in the context of an increasing focus on ESG and specifically on climate risk mitigation, climate resilience and zero-carbon in real estate investment.
Practical implications
With ESG and environmental sustainability taking on increased importance across the international real estate markets, it is important that real estate fund managers have a full understanding of the ESG and environmental sustainability status of these real estate markets where they may be considering real estate investment opportunities; this includes both the developed and emerging real estate markets. This is essential to ensure future capital raising for new funds, as well as supporting the global ESG agenda by the real estate investment community. Specific strategies are also identified for emerging real estate markets to improve their environmental sustainability practices and ESG status.
Originality/value
This is the first paper to use the JLL GRETI sustainability sub-index to assess the environmental sustainability status of 99 real estate markets globally; providing strategic insights for real estate investment managers as they develop their global real estate portfolios and more fully embrace the challenges of ESG and environmental sustainability in the real estate space going forward. Specific strategies are clearly identified for all markets to improve their environmental sustainability ratings to the benefit of both global real estate investment and the broader communities.
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