Work

The impact of biodiversity score on the European firm’s performance

Year: 2025

Type: article

Abstract: This study aims to contribute to the corporate-environment nexus by investigating the impact of biodiversity scores on firms’ financial performance. Employing a panel model applied to 36 European firms, we find a positive and statistically significant relationship between the Biodiversity Impact Reduction Score and financial performance and firm value. These findings highlight the financial advantages of effective biodiversity management, improving operational efficiency and strengthening investor confidence. Our results offer useful insights for both corporate decision-makers and the academic community, shedding light on the economic implications of biodiversity-related risks

Source: International Review of Financial Analysis

DOI: 10.1016/j.irfa.2025.104460

Authors: Caterina Di Tommaso, Matteo Foglia, Vincenzo Pacelli

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Life on land

Open Access status: hybrid

Estimated APC paid: $3,770

Funder: Universita degli Studi di Bari Aldo Moro