The relationship between carbon performance and financial performance: evidence from European firms ​

This thesis investigates the relationship between corporate carbon performance and financial performance, focusing on carbon intensity as an effective indicator of firms’ carbon performance. In recent years, climate change has become an increasingly relevant issue for companies, regulators and investors, leading firms to measure, disclose and manage their greenhouse gas emissions more systematically. For this reason, the thesis first introduces the concept of carbon accounting, understood as the process through which emissions are identified, measured, classified and reported. Particular attention is paid to emissions classification, especially the distinction between Scope 1, Scope 2 and Scope 3 emissions, as this classification determines the boundaries of corporate responsibility and affects the way carbon performance is measured. Building on this conceptual framework and on the existing literature, the thesis then examines whether better carbon performance is associated with improved financial outcomes. Carbon performance is interpreted as the outcome of the carbon accounting process, while carbon intensity is used to assess the firm’s emissions efficiency in relation to its economic activity