Water and waste management strategies as drivers of the financial performance of food companies

M. Ángeles López-Cabarcos, Juan Piñeiro-Chousa, Lara Quiñoá-Piñeiro and M. Luisa López-Pérez

Technological Forecasting and Social Change, 2024, vol. 200, issue C

Abstract: Environmental degradation and resource overuse can affect business operations. Sustainable development is therefore a global economic priority. Food companies must develop strategies to ensure food security and seek business models to provide economic, social, and environmental benefits. This paper presents the combinations of water and waste management practices (water efficiency targets, water consumption ratio, water intensity ratio, waste recycling ratio, and waste intensity ratio) that lead to an overvaluation of food companies in the stock market (Tobin's Q > 1). These combinations of practices were identified using fuzzy-set qualitative comparative analysis (fsQCA) of a global sample of 61 listed companies from the food production sector. No necessary conditions were found for the outcome of a Tobin's Q >1. In contrast, the sufficiency analysis revealed five sufficient configurations for overvaluation. The presence of significant recycling and waste reuse performance and the absence of a strong intensity of water withdrawal and waste production are key conditions to achieve the presence of the outcome. The findings provide useful insights for managers, who can focus their business strategies on sustainable and efficient water and waste management to support high financial performance. The findings can also help investors in their decision making.

Keywords: Food industry; ESG; Water management; Waste management; Firm value; Business strategy (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162523008235
Full text for ScienceDirect subscribers only

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:eee:tefoso:v:200:y:2024:i:c:s0040162523008235

DOI: 10.1016/j.techfore.2023.123138

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().