Can going green be profitable? Voluntary carbon markets and firm-level returns

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:This paper contributes empirical evidence on the financial returns to voluntary carbon markets, using ROIC as a performance metric in a Mediterranean context.

🏢実務担当者:Corporate sustainability teams can use these findings to justify voluntary carbon offset investments as profit-enhancing strategies, strengthening internal business cases.

🏛政策担当者:The results suggest policies promoting voluntary carbon offsetting may yield dual benefits of emission reductions and improved corporate competitiveness.

Research background: This paper contributes to the emerging literature on carbon neutrality by addressing the gap in empirical evidence regarding the long-term financial implications of voluntary environmental commitments. While the adoption of carbon offset policies is increasing globally, the relationship between these voluntary climate actions and corporate profitability remains under-explored, particularly in the context of Mediterranean markets like Spain where disclosure has transitioned from voluntary to mandatory. Purpose of the article: The article pursues two primary objectives: first, to map the adoption patterns and strategic trends of corporative voluntary carbon offset policies; and second, to empirically assess whether such environmental engagement translates into measurable improvements in financial performance, specifically analysing if carbon responsibility acts as a driver for corporate value creation. Methods: We conduct a longitudinal study covering a sample of Spanish companies over the 2019–2022 period, a timeframe characterized by voluntary carbon footprint disclosure. The methodology employs panel data and multiple regression analysis to examine the link between voluntary engagement in carbon markets and firm profitability. Financial performance is proxied by Return on Invested Capital (ROIC) to ensure a robust measure of efficiency. Findings & value added: Our findings indicate that companies pursuing voluntary carbon offset strategies exhibit higher ROIC, suggesting that environmental responsibility and financial performance are mutually reinforcing. The study provides critical value by informing policymakers on the benefits of incentivizing voluntary offsetting. Furthermore, it offers investors and managers empirical evidence that sustainability strategies can simultaneously enhance profitability and climate performance, moving beyond the traditional trade-off perspective.

• openalex https://doi.org/10.24136/eq.4226first seen 2026-07-18 05:44:17