Author(s)

Miyako Enokibori, Ryuji Matsuhashi, Yoshikuni Yoshida

Department of Electrical Engineering and Information Systems, Graduate School of Engineering, The University of Tokyo, Tokyo, Japan.
Department of Environment Systems, Graduate School of Frontier Sciences, The University of Tokyo, Kashiwa, Japan.

Using data from a survey, we examined actions taken by large corporations based in three countries to combat climate change and related these actions to the corporations’ financial performance. We analyzed the correlation between financial performance and climate change management performance to determine the extent that climate change management activities are a net cost or a net benefit to companies. We found that corporate climate change management performance is generally positively correlated with financial performance, but that the relationship differs among countries due to national-level external factors. A case study of Japanese automobile manufacturing companies showed that sales of a company’s fuel-efficient cars, reflecting consumers’ awareness of climate change, are associated with higher valuation by financial markets.

Corporate Climate Change Management; Financial Analysis; Correlation Analysis; Automobile Manufacturer; Vehicle Fuel Efficiency

M. Enokibori, R. Matsuhashi and Y. Yoshida, "Correlations between Corporate Climate Change Management and Financial Performance: A Case Study of Japanese Automobile Manufacturers," Low Carbon Economy, Vol. 4 No. 4, 2013, pp. 129-136. doi: 10.4236/lce.2013.44014.