Considering that there is currently no unanimity on the link between the emission reduction ratio and performance, the purpose of this research is twofold: (i) to analyze the variation in carbon emissions shown by companies in their sustainability reports and (ii) to analyze how this variation influences companies' financial and operational performance.
With these aims in mind, the sample used for the analysis consists of 89 international companies. These companies belong to the Fortune 500 list of multinationals and they thus provided information on their GHG emissions in their sustainability reports during the Leukadherin 1 2006–2009. The sample consists of 267 observations. Methodologically, the variation in carbon emissions is somatostatin proxied for by variation in carbon dioxide (CO2 hereafter). The data used to represent CO2 emissions were obtained from the sustainability, sustainable development, and corporate social responsibility reports presented by each company on its website. The unit used by companies to measure their emissions is metric tonnes. Meanwhile, with the aim of demonstrating the possible differences in performance measures, two proxies are used: (i) return on equity (ROE) as a measure of financial performance and (ii) return on assets (ROA) as a measure of operational performance.