THE IMPACT OF GREEN PARTNERSHIPS AND INTERNATIONALIZATION ON THE ENVIRONMENTAL PERFORMANCE OF METALLURGICAL COMPANIES
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Statement of substantive character of the term paper 2
Introduction 5
Chapter 1. Theoretical background 8
1.1. Industry overview 8
1.2. Corporate Social Responsibility: terms and concepts 9
1.3. ESG concept 10
1.3.1. ESG concept in metallurgical industry 11
1.4. Internationalization and ESG performance 12
1.5. The concept of green partnership 13
1.6. Research design 15
1.6.1. Classification of green partnerships 16
1.6.2. Content analysis 17
1.7. Hypotheses statement 19
Chapter 2. Methodology of the research 22
2.1. Data collection 22
2.2. Characteristics of the data sample 22
2.3. Description of variables 23
2.3.4. Dependent variables 23
2.3.5. Independent variables 23
2.3.6. Control independent variables 24
2.4 Description of the model 26
2.5 Descriptive statistics 27
2.6 Multicollinearity test 27
Chapter 3. Model results and discussion of the results 29
3.1. Model results 29
3.2. Discussion of the results 33
Conclusion 35
Reference list 37
Appendix 42
Appendix 1. Active environmental partnerships list 42
Appendix 2. Histograms of the distribution of variables 46
Introduction 5
Chapter 1. Theoretical background 8
1.1. Industry overview 8
1.2. Corporate Social Responsibility: terms and concepts 9
1.3. ESG concept 10
1.3.1. ESG concept in metallurgical industry 11
1.4. Internationalization and ESG performance 12
1.5. The concept of green partnership 13
1.6. Research design 15
1.6.1. Classification of green partnerships 16
1.6.2. Content analysis 17
1.7. Hypotheses statement 19
Chapter 2. Methodology of the research 22
2.1. Data collection 22
2.2. Characteristics of the data sample 22
2.3. Description of variables 23
2.3.4. Dependent variables 23
2.3.5. Independent variables 23
2.3.6. Control independent variables 24
2.4 Description of the model 26
2.5 Descriptive statistics 27
2.6 Multicollinearity test 27
Chapter 3. Model results and discussion of the results 29
3.1. Model results 29
3.2. Discussion of the results 33
Conclusion 35
Reference list 37
Appendix 42
Appendix 1. Active environmental partnerships list 42
Appendix 2. Histograms of the distribution of variables 46
The relevance of this research lies in the fact that in the modern industrial ecosystem, which is dynamically evolving, and which is known for its raising attention to ecological consciousness, the role of green partnerships in supporting the environmental performance of metallurgical companies as leading producers of harmful CO2 emissions gains a significant importance. This research aims to investigate this principal aspect by offering insightful data to a wide array of stakeholders.
The analysis of green partnerships addresses global need to solve environmental problems, such as pollution, climate change and irrational use of resources, and highlights the need to introduce joint efforts into dealing.with the issue. All of the mentioned problems are especially relevant for metallurgical sector, which is famous for its significant negative environmental impact.
The research in the field of reasons for green partnerships of metallurgical companies positively affecting the environment is especially important, taking into account governments all over the world tightening climate regulations. The activation of the Paris agreement and governments’ commitment to UN Global Compact further underlines the need for accepting industrial strategies, which align with global efforts to keep global warming below 2 degrees Celsius above pre-industrial level1. Furthermore, it is difficult to overestimate the social value of the environmental performance indicator, which includes many of indeed important metrics. Nowadays metallurgical companies gain more and more attention from the public and eco-conscious groups, demanding meticulous control over the environmental performance. Violations might harm the companies’ reputations and legal appearance.
Thus, green partnerships not only can serve as a possible plan for companies to increase their environmental performance and improve overall corporate image, but also are able to contribute to the global goal of creating sustainable industrial framework, which highlights the particular importance of this topic for research. In addition, the results of the study may be applicable to other industries with similar specifics, providing a framework and useful insights for further study of the topic of green partnerships, which is not yet widely discussed. For example, companies belonging to energy intensive industries can use the results of this study as a starting point for further research.
Considering that the phenomenon of green partnerships as a factor influencing the effectiveness of the company's environmental activity has not been studied so widely, the focus on the metallurgical industry is a significant step forward in the study of this topic. Especially taking into account the role of the metallurgical industry as one of the most active environmental pollutants.
The goal of this research is to evaluate the impact of green partnerships and internationalization on the environmental performance of metallurgical companies.
To achieve the identified goal of the research paper, several objectives were formulated:
• To study the theoretical basis of corporate social responsibility and ESG, as well as green partnerships’ and internationalization concepts;
• To study aspects of the ESG agenda and internationalization specific to the metallurgical industry;
• To conduct the analysis of previously completed theoretical and empirical papers, formulate the hypotheses;
• To collect and process the data and create an empirical model;
• To evaluate the impact of green partnerships and internationalization on the environmental performance of metallurgical companies by testing the econometric model;
• To analyze the outcomes of the study, formulate conclusions and recommendations for potential stakeholders.
The object of the study are metallurgical companies, disclosing information on their ESG- related practices.
The subject of the study is the impact of green partnerships and internationalization on the environmental performance of these metallurgical companies.
Research methodology includes econometric modeling using regression analysis using the Python programming language.
The research paper includes three chapters. Chapter 1 provides a comprehensive overview of the metallurgical industry, emphasizing its economic significance and environmental challenges. It defines corporate social responsibility (CSR) and explores its relevance to the industry. The chapter introduces the Environmental, Social, and Governance (ESG) framework and its specific application within the metallurgical sector. It discusses the relationship between internationalization and ESG performance and examines the concept and classification of green partnerships. The chapter concludes by presenting the hypotheses formulated based on the literature review.
...
The analysis of green partnerships addresses global need to solve environmental problems, such as pollution, climate change and irrational use of resources, and highlights the need to introduce joint efforts into dealing.with the issue. All of the mentioned problems are especially relevant for metallurgical sector, which is famous for its significant negative environmental impact.
The research in the field of reasons for green partnerships of metallurgical companies positively affecting the environment is especially important, taking into account governments all over the world tightening climate regulations. The activation of the Paris agreement and governments’ commitment to UN Global Compact further underlines the need for accepting industrial strategies, which align with global efforts to keep global warming below 2 degrees Celsius above pre-industrial level1. Furthermore, it is difficult to overestimate the social value of the environmental performance indicator, which includes many of indeed important metrics. Nowadays metallurgical companies gain more and more attention from the public and eco-conscious groups, demanding meticulous control over the environmental performance. Violations might harm the companies’ reputations and legal appearance.
Thus, green partnerships not only can serve as a possible plan for companies to increase their environmental performance and improve overall corporate image, but also are able to contribute to the global goal of creating sustainable industrial framework, which highlights the particular importance of this topic for research. In addition, the results of the study may be applicable to other industries with similar specifics, providing a framework and useful insights for further study of the topic of green partnerships, which is not yet widely discussed. For example, companies belonging to energy intensive industries can use the results of this study as a starting point for further research.
Considering that the phenomenon of green partnerships as a factor influencing the effectiveness of the company's environmental activity has not been studied so widely, the focus on the metallurgical industry is a significant step forward in the study of this topic. Especially taking into account the role of the metallurgical industry as one of the most active environmental pollutants.
The goal of this research is to evaluate the impact of green partnerships and internationalization on the environmental performance of metallurgical companies.
To achieve the identified goal of the research paper, several objectives were formulated:
• To study the theoretical basis of corporate social responsibility and ESG, as well as green partnerships’ and internationalization concepts;
• To study aspects of the ESG agenda and internationalization specific to the metallurgical industry;
• To conduct the analysis of previously completed theoretical and empirical papers, formulate the hypotheses;
• To collect and process the data and create an empirical model;
• To evaluate the impact of green partnerships and internationalization on the environmental performance of metallurgical companies by testing the econometric model;
• To analyze the outcomes of the study, formulate conclusions and recommendations for potential stakeholders.
The object of the study are metallurgical companies, disclosing information on their ESG- related practices.
The subject of the study is the impact of green partnerships and internationalization on the environmental performance of these metallurgical companies.
Research methodology includes econometric modeling using regression analysis using the Python programming language.
The research paper includes three chapters. Chapter 1 provides a comprehensive overview of the metallurgical industry, emphasizing its economic significance and environmental challenges. It defines corporate social responsibility (CSR) and explores its relevance to the industry. The chapter introduces the Environmental, Social, and Governance (ESG) framework and its specific application within the metallurgical sector. It discusses the relationship between internationalization and ESG performance and examines the concept and classification of green partnerships. The chapter concludes by presenting the hypotheses formulated based on the literature review.
...
The topic of green partnerships and internationalization in the metallurgical industry is highly relevant due to the sector's significant environmental impact. Metallurgical companies act as major contributors to global carbon emissions and resource consumption. Addressing environmental performance through collaborative green initiatives and expanding global operations can lead to substantial improvements in sustainability. This research provides insights into effective strategies for reducing the environmental footprint of metallurgical companies, aligning with global efforts to combat climate change and promote sustainable industrial practices.
The paper provides valuable insights into how green partnership participation and internationalization influence sustainability practices within the industry. The findings indicate that:
Participation in green partnerships, both actively and passively, significantly enhances environmental performance. This is possible due to the collaborative sharing of best practices, access to advanced technologies, and improved regulatory compliance. Companies that expand internationally show improved environmental performance. Exposure to diverse regulatory environments and competitive pressures compels these companies to adopt superior environmental practices. The participation in international green partnerships provides the most substantial improvements in environmental performance. Access to global expertise and resources enables companies to address environmental challenges more effectively.
These conclusions underscore the importance of active engagement in green partnerships and international expansion for metallurgical companies aiming to enhance their environmental performance. Companies should prioritize meaningful collaboration and embrace global best practices to drive sustainable growth and compliance with environmental standards. This study contributes to the broader understanding of sustainability strategies in the metallurgical sector, highlighting the positive impacts of internationalization and green partnerships on corporate environmental responsibility.
Talking about managerial/practical implications, the following recommendations could be provided based on the described results:
1. For Metallurgical Companies, who are interested in mitigating harmful effects caused to the environment by their activities:
a. To engage actively in collaborative environmental initiatives, such as Green Partnerships, to access advanced technologies and best practices;
b. To leverage internationalization to adopt superior environmental standards and practices from diverse regulatory environments;
c. To invest in sustainable technologies and processes to reduce emissions and improve resource efficiency.
2. For Stakeholders, such as investors, regulators, local communities, etc.:
a. To encourage partnerships between companies and environmental organizations to enhance collective environmental performance;
b. To develop stringent environmental regulations that promote sustainable practices within the metallurgical industry;
c. To provide financial and policy incentives for companies to adopt green technologies and practices, promoting a sustainable industry-wide transformation.
This research has several limitations that should be acknowledged. Firstly, the data sample is constrained to companies that disclose their ESG practices publicly, which might introduce a selection bias. Companies that are more transparent about their environmental efforts might already be more inclined towards better performance, thus skewing the results. Secondly, the study relies on the Thomson Reuters database for identifying green partnerships and environmental performance metrics. This dependence on a single data source may affect the comprehensiveness and accuracy of the findings. Additionally, the binary classification of green partnerships into 'active' and 'nominal' may oversimplify the complexity and nuances of these collaborations. Lastly, the research timeframe, limited to four years, might not capture long-term trends and the full impact of green partnerships and internationalization on environmental performance.
Future research could address these limitations by expanding the scope to include a broader range of industries. This would help determine whether the observed effects of green partnerships and internationalization on environmental performance are consistent across different sectors. Additionally, incorporating multiple data sources and databases could provide a more comprehensive and accurate picture of companies' ESG activities and performance. Future studies might also consider a more granular classification of green partnerships, taking into account various degrees of engagement and types of activities. Longitudinal studies spanning a longer timeframe could better capture the long-term impacts and trends related to green partnerships and internationalization. Finally, qualitative research methods, such as case studies and interviews with industry stakeholders, could provide deeper insights into the mechanisms through which green partnerships and internationalization influence environmental performance. These approaches would help validate and enrich the quantitative findings, offering a more holistic understanding of the topic.
The paper provides valuable insights into how green partnership participation and internationalization influence sustainability practices within the industry. The findings indicate that:
Participation in green partnerships, both actively and passively, significantly enhances environmental performance. This is possible due to the collaborative sharing of best practices, access to advanced technologies, and improved regulatory compliance. Companies that expand internationally show improved environmental performance. Exposure to diverse regulatory environments and competitive pressures compels these companies to adopt superior environmental practices. The participation in international green partnerships provides the most substantial improvements in environmental performance. Access to global expertise and resources enables companies to address environmental challenges more effectively.
These conclusions underscore the importance of active engagement in green partnerships and international expansion for metallurgical companies aiming to enhance their environmental performance. Companies should prioritize meaningful collaboration and embrace global best practices to drive sustainable growth and compliance with environmental standards. This study contributes to the broader understanding of sustainability strategies in the metallurgical sector, highlighting the positive impacts of internationalization and green partnerships on corporate environmental responsibility.
Talking about managerial/practical implications, the following recommendations could be provided based on the described results:
1. For Metallurgical Companies, who are interested in mitigating harmful effects caused to the environment by their activities:
a. To engage actively in collaborative environmental initiatives, such as Green Partnerships, to access advanced technologies and best practices;
b. To leverage internationalization to adopt superior environmental standards and practices from diverse regulatory environments;
c. To invest in sustainable technologies and processes to reduce emissions and improve resource efficiency.
2. For Stakeholders, such as investors, regulators, local communities, etc.:
a. To encourage partnerships between companies and environmental organizations to enhance collective environmental performance;
b. To develop stringent environmental regulations that promote sustainable practices within the metallurgical industry;
c. To provide financial and policy incentives for companies to adopt green technologies and practices, promoting a sustainable industry-wide transformation.
This research has several limitations that should be acknowledged. Firstly, the data sample is constrained to companies that disclose their ESG practices publicly, which might introduce a selection bias. Companies that are more transparent about their environmental efforts might already be more inclined towards better performance, thus skewing the results. Secondly, the study relies on the Thomson Reuters database for identifying green partnerships and environmental performance metrics. This dependence on a single data source may affect the comprehensiveness and accuracy of the findings. Additionally, the binary classification of green partnerships into 'active' and 'nominal' may oversimplify the complexity and nuances of these collaborations. Lastly, the research timeframe, limited to four years, might not capture long-term trends and the full impact of green partnerships and internationalization on environmental performance.
Future research could address these limitations by expanding the scope to include a broader range of industries. This would help determine whether the observed effects of green partnerships and internationalization on environmental performance are consistent across different sectors. Additionally, incorporating multiple data sources and databases could provide a more comprehensive and accurate picture of companies' ESG activities and performance. Future studies might also consider a more granular classification of green partnerships, taking into account various degrees of engagement and types of activities. Longitudinal studies spanning a longer timeframe could better capture the long-term impacts and trends related to green partnerships and internationalization. Finally, qualitative research methods, such as case studies and interviews with industry stakeholders, could provide deeper insights into the mechanisms through which green partnerships and internationalization influence environmental performance. These approaches would help validate and enrich the quantitative findings, offering a more holistic understanding of the topic.
