The Impact of Accounting for the Environmental Element of ESG on Treasury Performance in U.S. Chemical Manufacturing Companies, 2023–2024: An IFRS S1 and S2 Perspective

Folashade Agoro and Dr Apanisile Temitope Samuel
Additional contact information
Folashade Agoro: Doctor of Business Administration Student, Westcliff University USA
Dr Apanisile Temitope Samuel: Doctor of Business Administration Student, Westcliff University USA

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 7, 2690-2698

Abstract: This study examines the impact of environmental ESG accounting, aligned with IFRS S1 and S2 standards, on treasury performance in four U.S. chemical manufacturing companies: Dow Inc., DuPont de Nemours, Inc., Eastman Chemical Company, and LyondellBasell Industries. Using a comparative case study approach, we analyze publicly available data from 2023 to assess how environmental performance influences treasury metrics such as weighted average cost of capital (WACC), liquidity (current ratio), and return on equity (ROE). Findings indicate that robust environmental accounting, particularly strong IFRS S1/S2 compliance, correlates with lower WACC (by up to 0.7%) and higher ROE (by up to 1.5%), with Dow Inc. and Eastman Chemical outperforming due to comprehensive emissions reporting. These results highlight the financial benefits of environmental transparency in treasury management within the chemical sector.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... ssue-7/2690-2698.pdf (application/pdf)
https://rsisinternational.org/journals/ijriss/arti ... -and-s2-perspective/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:issue-7:p:2690-2698

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().