The impact of biodiversity score on the European firm’s performance

Caterina Di Tommaso, Matteo Foglia and Vincenzo Pacelli

International Review of Financial Analysis, 2025, vol. 106, issue C

Abstract: This study aims to contribute to the corporate-environment nexus by investigating the impact of biodiversity scores on firms’ financial performance. Employing a panel model applied to 36 European firms, we find a positive and statistically significant relationship between the Biodiversity Impact Reduction Score and financial performance and firm value. These findings highlight the financial advantages of effective biodiversity management, improving operational efficiency and strengthening investor confidence. Our results offer useful insights for both corporate decision-makers and the academic community, shedding light on the economic implications of biodiversity-related risks.

Keywords: Biodiversity risk; Firm value; European firms; Disclosure (search for similar items in EconPapers)
JEL-codes: G32 G38 Q51 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:106:y:2025:i:c:s1057521925005472

DOI: 10.1016/j.irfa.2025.104460

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