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Revisiting the Impact of Corporate Carbon Management Strategies on Corporate Financial Performance: A Systematic Literature Review

Author

Listed:
  • Maruli Sitompul

    (School of Business, IPB University, Bogor 16151, Indonesia)

  • Arif Imam Suroso

    (School of Business, IPB University, Bogor 16151, Indonesia)

  • Ujang Sumarwan

    (Faculty of Human Ecology, IPB University, Bogor 16680, Indonesia)

  • Nimmi Zulbainarni

    (School of Business, IPB University, Bogor 16151, Indonesia)

Abstract

The objective of this research is to examine the relationship between carbon management strategies in corporations and their impact on financial performance. We employ a systematic literature review to analyze 223 articles retrieved from reputable journals indexed in Scopus. A total of 22 empirical studies covering various industry sectors and countries were selected and included in our analysis. The result indicates that 59% of the articles demonstrate positive findings. Among these, 50% show a significant positive impact, while 9% exhibit mixed results with both positive and negative outcomes in the short and long-term perspectives. These findings suggest that adopting carbon management strategies predominantly has a positive influence on corporate financial performance. In this study, we also provide a summary of the dependent, independent, and control variables, as well as commonly used indicators in this research topic, to help guide future quantitative research. Lastly, we offer a summary of the motivations, drivers, and barriers that corporations experience when implementing carbon management strategies. These insights will be valuable for business managers and policymakers, aiding them in successfully embarking on the journey to achieve net-zero emissions.

Suggested Citation

  • Maruli Sitompul & Arif Imam Suroso & Ujang Sumarwan & Nimmi Zulbainarni, 2023. "Revisiting the Impact of Corporate Carbon Management Strategies on Corporate Financial Performance: A Systematic Literature Review," Economies, MDPI, vol. 11(6), pages 1-21, June.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:6:p:171-:d:1175353
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    References listed on IDEAS

    as
    1. Andewi Rokhmawati & Ardi Gunardi & Matteo Rossi, 2017. "How Powerful is Your Customers Reaction to Carbon Performance? Linking Carbon and Firm Financial Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 85-95.
    2. Yu He & Qingliang Tang & Kaitian Wang, 2016. "Carbon performance versus financial performance," China Journal of Accounting Studies, Taylor & Francis Journals, vol. 4(4), pages 357-378, October.
    3. Indra Wahyudi & Arif Imam Suroso & Bustanul Arifin & Rizal Syarief & Meika Syahbana Rusli, 2021. "Multidimensional Aspect of Corporate Entrepreneurship in Family Business and SMEs: A Systematic Literature Review," Economies, MDPI, vol. 9(4), pages 1-17, October.
    4. Schultz, Karl & Williamson, Peter, 2005. "Gaining Competitive Advantage in a Carbon-constrained World:: Strategies for European Business," European Management Journal, Elsevier, vol. 23(4), pages 383-391, August.
    5. Stefan Lewandowski, 2017. "Corporate Carbon and Financial Performance: The Role of Emission Reductions," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1196-1211, December.
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    Cited by:

    1. Agnieszka Karman & Mariusz Bieniek & Armand Kasztelan, 2025. "The Impact of Climate Aspirations on Corporate Carbon Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 9908-9929, December.
    2. Salvi, Antonio & Martielli, Francesco & Battisti, Enrico & Forliano, Canio & Kumar, Satish, 2025. "Climate change management and companies' financial performance: Exploring the moderating role of carbon credits," Research in International Business and Finance, Elsevier, vol. 75(C).

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