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The Firms’ Integration Process of the Twin Pillars of Environmental Sustainability: Climate Change and Biodiversity Loss

Author

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  • Andersson, Fredrik N G

    (Department of Economics, Lund University)

  • Arvidsson, Susanne

    (Department of Business Administration, Lund University)

Abstract

This study examines the integration of climate change and biodiversity into business strategies and governance structures of listed firms on the Swedish stock exchange NasdaqOMX Large Cap. The results show clear disparities in the level of integration and the factors driving the integration process. All, but a few small firms, have integrated climate change into business strategies, and are ahead in the process of integrating it into governance structures. Biodiversity integration is lagging behind the integration of climate change. We also find that the integration process depends on the sustainability competences within the board unlike climate change when the board composition is less important. Additionally, our results show that firms require external pressures from, e.g., regulations to integrate biodiversity and climate change into business strategies and governance structures.

Suggested Citation

  • Andersson, Fredrik N G & Arvidsson, Susanne, 2024. "The Firms’ Integration Process of the Twin Pillars of Environmental Sustainability: Climate Change and Biodiversity Loss," Working Papers 2024:2, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2024_002
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    biodiversity; climate change; sustainable finance; business strategy; governance structures; CSRD;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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