| dc.description.abstract | As the interest in environmental sustainability continues to grow, a methodology for rating
how firms are performing is required. The main challenge encountered is the lack of
comparable and credible information.
Given a ranking it is necessary to understand if shareholders can use this information to
manipulate firms’ actions. The results of the analysis indicated that given the correct number
of environmentally conscious investors, companies would have to make the necessary
adaptations to their operations.
A salient conclusions which can be made, is that there is not enough information to make an
informative decision, but as environmental accounting develops investors will be able to use
the information and are likely to support acceptable green firms. If management’s mindset
continues to be focused on maximizing shareholder value, this will hamper unacceptable
firms and force them to reform if they wish to succeed. This is likely to continue until all
firms are regarded as acceptable within their industries and no premium exists. | en |
