IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i4p1485-d1336528.html
   My bibliography  Save this article

Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?

Author

Listed:
  • Raminta Vaitiekuniene

    (Department of Mathematical Modeling, Kaunas University of Technology, Studentu 50, 51368 Kaunas, Lithuania)

  • Kristina Sutiene

    (Department of Mathematical Modeling, Kaunas University of Technology, Studentu 50, 51368 Kaunas, Lithuania)

  • Bohdan Kovalov

    (Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Kharkivska Str., 116, 40007 Sumy, Ukraine)

  • Rytis Krusinskas

    (Sustainable Economics Research Group, Kaunas University of Technology, Gedimino 50, 44249 Kaunas, Lithuania)

Abstract

The Paris Agreement, signed in 2015 and put into effect in 2016, led to the European Green Deal. It envisages ensuring climate neutrality by 2050. To achieve this, solutions to the climate challenge have to be implemented globally. This research aims to evaluate interactions among corporate financial, innovation, and environmental performance indicators in European and Asian–Oceanian companies. Financial performance refers to the financial capacity and financial resources of companies that enable the creation of more sustainable innovations. More sustainable innovation could contribute to limiting global warming to 1.5 °C. Science indicates that global greenhouse gas emissions need to be cut down by 43% by 2030, compared to 2019 levels, to limit global warming to 1.5 °C. According to our results, it is possible to compare which region, Europe or Asia, moved towards climate neutrality in the analyzed period of 2008–2019. By determining their starting positions, we seek to disclose how companies can contribute to climate change reduction. The results reveal that for both analyzed regions, financial and innovation indicators have an important impact on environmental performance. We found that the ROA ratio and R&D expenditures are significantly linked to carbon dioxide (CO 2 ) emissions as an indicator of environmental performance. The interaction between ROA and CO 2 emissions was identified as being stronger in Asia–Oceania. The relationship between R&D expenditures and CO 2 emissions was more robust in Europe. Therefore, Europe is participating in the race towards sustainable goals by increasing R&D expenditures to stimulate green economy development. In the race to achieve the Green Deal’s long-term 2050 targets, companies will have to combine their strategic decisions, while business survival requires profitability, meaning that the race towards climate neutrality goals will hardly be possible without corporate R&D expenditures.

Suggested Citation

  • Raminta Vaitiekuniene & Kristina Sutiene & Bohdan Kovalov & Rytis Krusinskas, 2024. "Does the Financial and Innovation Performance of European and Asian–Oceanian Companies Coincide with the Targets of the Green Deal?," Sustainability, MDPI, vol. 16(4), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1485-:d:1336528
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/4/1485/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/4/1485/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gaganis, Chrysovalantis & Galariotis, Emilios & Pasiouras, Fotios & Tasiou, Menelaos, 2023. "Managerial ability and corporate greenhouse gas emissions," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 438-453.
    2. Huang, Xiaoqi & Liu, Wei & Zhang, Zhan & Zou, Xinyu & Li, Pujuan, 2023. "Quantity or quality: Environmental legislation and corporate green innovations," Ecological Economics, Elsevier, vol. 204(PB).
    3. Nuno Sousa & Filipa Jorge & Mário Sérgio Teixeira & Nieves Losada & Miguel Melo & Maximino Bessa, 2023. "An Exploratory Study about the Effect of COVID-19 on the Intention to Adopt Virtual Reality in the Tourism Sector," Sustainability, MDPI, vol. 15(11), pages 1-13, May.
    4. Khan, Irfan & Zakari, Abdulrasheed & Dagar, Vishal & Singh, Sanjeet, 2022. "World energy trilemma and transformative energy developments as determinants of economic growth amid environmental sustainability," Energy Economics, Elsevier, vol. 108(C).
    5. Fusheng Xie, 2023. "Productivity Improvement from the Mixed-Ownership Reform: A Financial Frictions Perspective," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    6. Smol, Marzena, 2022. "Is the green deal a global strategy? Revision of the green deal definitions, strategies and importance in post-COVID recovery plans in various regions of the world," Energy Policy, Elsevier, vol. 169(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Minjing Yang & Cosimo Magazzino & Abraham Ayobamiji Awosusi & Navzodbek Abdulloev, 2024. "Determinants of Load capacity factor in BRICS countries: A panel data analysis," Natural Resources Forum, Blackwell Publishing, vol. 48(2), pages 525-548, May.
    2. Ghazala Aziz & Suleman Sarwar & Rida Waheed & Mohd Saeed Khan, 2024. "The significance of renewable energy, globalization, and agriculture on sustainable economic growth and green environment: Metaphorically, a two‐sided blade," Natural Resources Forum, Blackwell Publishing, vol. 48(3), pages 763-783, August.
    3. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    4. Xiong, Yuyu & Guo, Hongxiang & Nor, Datin Dr Mariani Md & Song, Andong & Dai, Li, 2023. "Mineral resources depletion, environmental degradation, and exploitation of natural resources: COVID-19 aftereffects," Resources Policy, Elsevier, vol. 85(PA).
    5. Muhammad Asif & Jian-Qiao Li & Muhammad Azam Zia & Muhammad Hashim & Uzair Aslam Bhatti & Mughair Aslam Bhatti & Ahmad Hasnain, 2024. "Environmental Sustainability in BRICS Economies: The Nexus of Technology Innovation, Economic Growth, Financial Development, and Renewable Energy Consumption," Sustainability, MDPI, vol. 16(16), pages 1-29, August.
    6. Qiu, Zhaoxuan & Li, Jincheng & Liu, Bei & Jin, Meilin & Wang, Jinmin, 2025. "How does energy quota trading affect the corporate pollution gap? Evidence from China," Economic Modelling, Elsevier, vol. 146(C).
    7. Ma, Defang & Wang, Mengkai & Zeng, Bo & Jiang, Hong, 2024. "Peer effects of firm environmental protection expenditures," Finance Research Letters, Elsevier, vol. 65(C).
    8. Ning Xu & Di Zhang & Yingjie Bai, 2024. "Managerial long‐termism and corporate innovation: Evidence from China through text mining approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2269-2286, March.
    9. Alfonso Marino & Paolo Pariso & Michele Picariello, 2024. "Organizational and Energy Efficiency Analysis of Italian Hospitals and Identification of Improving AI Solutions," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 628-640, November.
    10. Konstantinos Velaoras & Angeliki N. Menegaki & Serafeim Polyzos & Katerina Gotzamani, 2025. "The Role of Environmental Certification in the Hospitality Industry: Assessing Sustainability, Consumer Preferences, and the Economic Impact," Sustainability, MDPI, vol. 17(2), pages 1-31, January.
    11. Betgeri, Vikram & Bhardwaj, Om Parkash & Pischinger, Stefan, 2023. "Investigation of the drop-in capabilities of a renewable 1-Octanol based E-fuel for heavy-duty engine applications," Energy, Elsevier, vol. 282(C).
    12. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    13. Lan, Minghui & Zhang, Guangli & Yan, Wei & Qi, Fen & Qin, Lihua, 2024. "Greening through courts:Environmental law enforcement and corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 223-242.
    14. Sun, Wei & Yao, Guohui, 2023. "Impact of mineral resource depletion on energy use: Role of energy extraction, CO2 intensity, and natural resource sustainability," Resources Policy, Elsevier, vol. 86(PB).
    15. Hu, Xiaofeng, 2023. "Green economic recovery in Central Asia by utilizing natural resources," Resources Policy, Elsevier, vol. 83(C).
    16. Long, Han & Prasad, Biman & Krishna, Victor & Tang, Kai & Chang, Chun-Ping, 2024. "Understanding the key determinants of Fiji's renewable energy," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1144-1157.
    17. Cappelli, Federica & Carnazza, Giovanni & Vellucci, Pierluigi, 2023. "Crude oil, international trade and political stability: Do network relations matter?," Energy Policy, Elsevier, vol. 176(C).
    18. Jin, Youliang & Wang, Shujuan & Cheng, Xu & Zeng, Huixiang, 2024. "Can environmental tax reform curb corporate environmental violations? A quasi-natural experiment based on China's “environmental fees to taxes”," Journal of Business Research, Elsevier, vol. 171(C).
    19. Borsuk, Marcin & Eugster, Nicolas & Klein, Paul-Olivier & Kowalewski, Oskar, 2024. "Family firms and carbon emissions," Journal of Corporate Finance, Elsevier, vol. 89(C).
    20. Lu, Chengwu & Wang, Kun, 2023. "Natural resource conservation outpaces and climate change: Roles of reforestation, mineral extraction, and natural resources depletion," Resources Policy, Elsevier, vol. 86(PB).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1485-:d:1336528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.