EuroEconomica, Vol 37, No 3 (2018)

Stock Exchanges Sustainability Initiatives and Corporate Environmental Sustainability Commitment

Collins C Ngwakwe


This paper undertook an analysis to decipher the degree to which stock exchanges’ environmental proclivity has influenced companies’ environmental commitment. The paper is pertinent, as stock exchanges have often been criticised as instruments of capitalism hegemony, it thus helps to assuage such criticism given the paper’s findings about the growing environmental advocacy of stock exchanges to blend with their core economic objective to ensure environmental sustainability. The paper adopted a quantitative approach using the ordinary least square (OLS) technique with time series data from the Carbon Disclosure Project archive showing the number of companies engaging in carbon disclosure over the years. Holding other factors constant, and at an alpha of 0.05 significance level, findings from the analysis show that growth in stock exchanges’ environmental initiatives has contributed a positive and significant booster to corporate environmental commitment at P level of 0.020 significance, using number of carbon disclosing companies as a proxy for environmental commitment. The paper also found that the launch of the United Nations Sustainable Stock Exchanges in 2009 provided an additional impetus that has accelerated the environmental sustainability momentum of stock exchanges. The paper recommends further research on the extent to which corporate carbon commitments has resonated with pragmatic carbon reduction.


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