IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v20y2024i3d10.1007_s11365-024-00944-y.html
   My bibliography  Save this article

A strategic sustainability model for global luxury companies in the management of CO2 emissions

Author

Listed:
  • Celia Rangel-Pérez

    (Universidad Complutense de Madrid)

  • Belen López

    (ESIC University, ESIC)

  • Manuel Fernández

    (IE University)

Abstract

Luxury brands are at the forefront of sustainability efforts and carbon emission reductions to fight climate change. The goal of this paper is to analyze such climate change challenges in terms of cost efforts within large luxury conglomerates. In doing so, financial metrics have been gathered for the top 100 companies in the luxury sector and compared against CO2 emissions metrics with regressive methods. This enables the study of relationships between sustainability and finance to explore if sustainability is expensive and if sustainability is explained by costs, sales, taxes, or investment. Such works allow the setting of conclusions on financial and managerial decisions and, moreover, set a new framework of analysis based on financial variables and the positive or negative impact on CO2 emissions, such as which financial variables generate more CO2 emissions (luxury sales, capital investment and financial cost) and which help to reduce such emissions (cost of goods sold, general expenses and taxes).

Suggested Citation

  • Celia Rangel-Pérez & Belen López & Manuel Fernández, 2024. "A strategic sustainability model for global luxury companies in the management of CO2 emissions," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1597-1615, September.
    • Handle: RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00944-y
    DOI: 10.1007/s11365-024-00944-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-024-00944-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-024-00944-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arno Böhnert & Florian Blaschke & Marcel Biewendt, 2023. "Impact of Sustainability on the Strategic Direction of Luxury Companies," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 6, ejme_v6_i.
    2. Alessio Baratta & Antonio Cimino & Francesco Longo & Vittorio Solina & Saverino Verteramo, 2023. "The Impact of ESG Practices in Industry with a Focus on Carbon Emissions: Insights and Future Perspectives," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    3. Houcine Akrout & Simone Guercini, 2022. "Sustainability in fashion and luxury marketing: Results, paradoxes and potentialities," Journal of Global Fashion Marketing, Taylor & Francis Journals, vol. 13(2), pages 91-100, April.
    4. Amr ElAlfy & Nicholas Palaschuk & Dina El-Bassiouny & Jeffrey Wilson & Olaf Weber, 2020. "Scoping the Evolution of Corporate Social Responsibility (CSR) Research in the Sustainable Development Goals (SDGs) Era," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    5. Ana Nave & João Ferreira, 2019. "Corporate social responsibility strategies: Past research and future challenges," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 885-901, July.
    6. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    7. Arrigo, Elisa, 2018. "The flagship stores as sustainability communication channels for luxury fashion retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 170-177.
    8. Batat, Wided, 2020. "Pillars of sustainable food experiences in the luxury gastronomy sector: A qualitative exploration of Michelin-starred chefs’ motivations," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    9. W. Batat, 2020. "Pillars of Sustainable Food Experiences in the Luxury Gastronomy Sector: A Qualitative Exploration of Michelin-starred Chefs' Motivations," Post-Print hal-04457117, HAL.
    10. Sui-Hua Yu & Wan-Chen Liang, 2020. "Exploring the Determinants of Strategic Corporate Social Responsibility: An Empirical Examination," Sustainability, MDPI, vol. 12(6), pages 1-16, March.
    11. Jennifer L. Castle & Michael P. Clements & David F. Hendry, 2016. "An Overview of Forecasting Facing Breaks," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 12(1), pages 3-23, September.
    12. Quach, Sara & Septianto, Felix & Thaichon, Park & Nasution, Reza Ashari, 2022. "The role of art infusion in enhancing pro-environmental luxury brand advertising," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    13. Jennifer Kunz & Stephanie May & Holger J. Schmidt, 2020. "Sustainable luxury: current status and perspectives for future research," Business Research, Springer;German Academic Association for Business Research, vol. 13(2), pages 541-601, July.
    14. Claudia Patricia Maldonado-Erazo & José Álvarez-García & María de la Cruz del Río-Rama & Ronny Correa-Quezada, 2020. "Corporate Social Responsibility and Performance in SMEs: Scientific Coverage," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    15. Nadia Yusuf & Miltiadis D. Lytras, 2023. "Competitive Sustainability of Saudi Companies through Digitalization and the Circular Carbon Economy Model: A Bold Contribution to the Vision 2030 Agenda in Saudi Arabia," Sustainability, MDPI, vol. 15(3), pages 1-20, February.
    16. Rosa M. Muñoz & M. Valle Fernández & Yolanda Salinero, 2020. "Sustainability, Corporate Social Responsibility, and Performance in the Spanish Wine Sector," Sustainability, MDPI, vol. 13(1), pages 1-9, December.
    17. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    18. Alpaslan Kelleci, 2022. "Key Determinants of Luxury Marketing Accordant with Sustainability-Oriented Value Perspectives," Sustainability, MDPI, vol. 14(10), pages 1-13, May.
    19. Giuseppe Colella & Andrea Sestino & Cesare Amatulli, 2022. "The Role of Consumers’ Individual Differences and Perceived Product Quality in Sustainable Luxury Marketing: An Experimental Study in a Social Media Context," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 14(1), pages 1-34, December.
    20. Aurélie Hemonnet-Goujot & Aurélie Kessous & Fanny Magnoni, 2022. "The effect of sustainable product innovation on the consumer–luxury brand relationship: The role of past identity salience," Post-Print hal-03591714, HAL.
    21. Hannah L. Neumann & Luisa M. Martinez & Luis F. Martinez, 2020. "Sustainability efforts in the fast fashion industry: consumer perception, trust and purchase intention," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 12(3), pages 571-590, July.
    22. Thomas Lindner & Jonas Puck & Alain Verbeke, 2020. "Misconceptions about multicollinearity in international business research: Identification, consequences, and remedies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 283-298, April.
    23. Shahbaz, Muhammad & Solarin, Sakiru Adebola & Mahmood, Haider & Arouri, Mohamed, 2013. "Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis," Economic Modelling, Elsevier, vol. 35(C), pages 145-152.
    24. Silvana Secinaro & Valerio Brescia & Davide Calandra & Buerhan Saiti, 2020. "Impact of climate change mitigation policies on corporate financial performance: Evidence‐based on European publicly listed firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2491-2501, November.
    25. Anicia Jaegler & Tobias Goessling, 2020. "Sustainability concerns in luxury supply chains: European brand strategies and French consumer expectations," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2715-2733, September.
    26. Aurélie Hemonnet-Goujot & Aurélie Kessous & Fanny Magnoni, 2022. "The effect of sustainable product innovation on the consumer–luxury brand relationship: The role of past identity salience," Post-Print hal-03511454, HAL.
    27. Rajan Varadarajan, 2017. "Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation," Journal of the Academy of Marketing Science, Springer, vol. 45(1), pages 14-36, January.
    28. Osburg, Victoria-Sophie & Yoganathan, Vignesh & McLeay, Fraser & Diallo, Mbaye Fall, 2022. "(In)compatibilities in sustainable luxury signals," Ecological Economics, Elsevier, vol. 196(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Victoria-Sophie Osburg & Vignesh Yoganathan & Fabian Bartsch & Mbaye Fall Diallo & Hongfei Liu, 2024. "How Sustainable Luxury Influences Product Value Perceptions and Behavioral Intentions: A Comparative Study of Emerging vs. Developed Markets," Journal of Business Ethics, Springer, vol. 191(4), pages 713-738, May.
    2. Marlene Vock, 2022. "Luxurious and responsible? Consumer perceptions of corporate social responsibility efforts by luxury versus mass-market brands," Journal of Brand Management, Palgrave Macmillan, vol. 29(6), pages 569-583, November.
    3. Olaf Weber & Grace Saunders‐Hogberg, 2020. "Corporate social responsibility, water management, and financial performance in the food and beverage industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1937-1946, July.
    4. Lopez, Belen & Rangel, Celia & Fernández, Manuel, 2022. "The impact of corporate social responsibility strategy on the management and governance axis for sustainable growth," Journal of Business Research, Elsevier, vol. 150(C), pages 690-698.
    5. Spyridon A. Bafas & Alexandra P. Alexandropoulou & Andreas E. Fousteris & Eleni A. Didaskalou & Dimitrios A. Georgakellos, 2023. "Sustainable Development and Business Strategies: An Exploratory Study of Greek Businesses," Businesses, MDPI, vol. 3(3), pages 1-19, August.
    6. Amélia Brandão & Carmo Cupertino de Miranda, 2022. "Does Sustainable Consumption Behaviour Influence Luxury Services Purchase Intention?," Sustainability, MDPI, vol. 14(13), pages 1-28, June.
    7. Li, You & Wu, Shuilong & Yuan, Yongna & Hu, Zekun, 2024. "How temporal perspective affects the effectiveness of upcycled vs. recycled product advertisements," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    8. Wen-Yun Chang & Viriya Taecharungroj & Supara Kapasuwan, 2022. "Sustainable Luxury Consumers’ Preferences and Segments: Conjoint and Cluster Analyses," Sustainability, MDPI, vol. 14(15), pages 1-16, August.
    9. FAROOQ Hossan & MAHADI Hasan & TOUHIDUL Islam, 2024. "Green Practices To The Owners And Management Of Restaurant Business: An Empirical Study," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(1), pages 58-74, June.
    10. Wadim Strielkowski & Elena Tarkhanova & Natalia Baburina & Justas Streimikis, 2021. "Corporate Social Responsibility and the Renewable Energy Development in the Baltic States," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    11. José Vale & Rafaela Miranda & Graça Azevedo & Maria C. Tavares, 2022. "The Impact of Sustainable Intellectual Capital on Sustainable Performance: A Case Study," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    12. Quach, Sara & Septianto, Felix & Thaichon, Park & Nasution, Reza Ashari, 2022. "The role of art infusion in enhancing pro-environmental luxury brand advertising," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    13. Deepa Sharma & Suman Chakraborty & Ashwath Ananda Rao & Lumen Shawn Lobo, 2023. "The Relationship of Corporate Social Responsibility and Firm Performance: A Bibliometric Overview," SAGE Open, , vol. 13(1), pages 21582440231, March.
    14. Ante, Lennart, 2024. "The scope of green finance research: Research streams, influential works and future research paths," Ecological Economics, Elsevier, vol. 224(C).
    15. Rosa M. Muñoz & M. Valle Fernández & Yolanda Salinero, 2020. "Sustainability, Corporate Social Responsibility, and Performance in the Spanish Wine Sector," Sustainability, MDPI, vol. 13(1), pages 1-9, December.
    16. Belén López, 2022. "How Higher Education Promotes the Integration of Sustainable Development Goals—An Experience in the Postgraduate Curricula," Sustainability, MDPI, vol. 14(4), pages 1-13, February.
    17. Park, Sangchul & Kim, Sanghoon & Ahn, Sungsook, 2023. "Understanding the effect of art infusion type on retail product shopping: An attention to the intervening role of customers’ financial wealth," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    18. Manuela Lucchese & Ferdinando Di Carlo & Natalia Aversano & Giuseppe Sannino & Paolo Tartaglia Polcini, 2022. "Gender Reporting Guidelines in Italian Public Universities for Assessing SDG 5 in the International Context," Administrative Sciences, MDPI, vol. 12(2), pages 1-22, March.
    19. Shashi & Piera Centobelli & Roberto Cerchione & Amit Mittal, 2021. "Managing sustainability in luxury industry to pursue circular economy strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 432-462, January.
    20. Wang, Ying & Zhao, Jincan & Pan, Jialing, 2024. "The investigation of green purchasing behavior in China: A conceptual model based on the theory of planned behavior and self-determination theory," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00944-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.