The impact of environmental indicators on companies’ financial performance An Empirical Study of a Sample of French Companies for the Period (2009-2024)"

Abstract

The research aims to analyze the impact of environmental indicators namely) emissions, energy consumption, and waste generation (on the financial performance of companies by measuring their relationship with financial performance indicators such as return on equity and liquidity ratio. The study employed a set of financial and statistical methods to estimate the nature of the relationship between these indicators over the period (2009–2024) for a sample of French companies (Schneider Electric, Legrand, Framet, Renault, Vinci, and Valeo). These companies were selected due to their leadership in environmental performance and their transparency in data disclosure. The research found a statistically significant relationship between environmental indicators and companies’ financial performance. The study concluded with several recommendations, most notably the necessity of adopting environmental sustainability policies due to their essential role in achieving balance between financial objectives and corporate commitment to sustainability areas.