Growth through Green? Evidence from Firms Adopting Resource Efficiency Practices

Vincenzo Capalbo (), Alessandra Caruso (), Fulvio Iavernaro () and Angela Fortunato ()

Research in Social Sciences, 2025, vol. 8, issue 4, 1-15

Abstract: This study examines the relationship between the adoption of resource-efficiency practices and firm growth, measured in terms of employment and turnover. Drawing on survey data from Flash Eurobarometer 549, considering 10,994 firms, we analyze both the cumulative implementation of ten distinct resource-efficiency actions and the individual impact of each practice. Our results show that the breadth of implementation does not have a significant effect on firm growth, suggesting that merely increasing the number of adopted practices is insufficient to drive performance. However, specific practices, such as internal recycling and switching to greener suppliers, are associated with positive growth outcomes, while others, including waste minimization and external waste sales, exhibit negative or mixed effects. These findings contribute to the literature on corporate sustainability by highlighting the heterogeneous impact of environmental actions and emphasizing the importance of strategic alignment in achieving sustainable growth. Implications for firm-level decision-making and policy design are discussed.

Keywords: Corporate sustainability; employee growth; firm growth; resource efficiency practices; turnover growth. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ajo:reissc:v:8:y:2025:i:4:p:1-15:id:434

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