The Emerging Relationship Between Financial & Environmental Performance

Business in the Environment set out to test the hypothesis that there are financial benefits from achieving high environmental standards, and that these can be observed and measured in the workings of the financial markets. Its findings provide a mixed picture. BiE could not prove a positive correlation between environmental management and financial returns, although the negative proposition was not proven either. But it did find a statistically significant negative correlation between high environmental standards and stock price returns volatility.