Title: How the mitigation of environmental impacts affect economic performance in UK manufacturing and construction companies

Authors: Timothy Fry; Rebecca Rawson; Uchechukwu Okere

Addresses: University of Derby, Kedleston Road, Derby, DE22 1GB, UK ' University of Derby, Kedleston Road, Derby, DE22 1GB, UK ' University of Derby, Kedleston Road, Derby, DE22 1GB, UK

Abstract: Manufacturing and construction (M&C) companies cause significant environmental impacts and are under pressure to act. Despite research analysing the relationship between environmental impact mitigation (EIM) and economic performance (EP), findings remain inconclusive. Acknowledging the longevity of the M&C sector, and the uptake of ISO 14001 in UK companies, there is a lack of research analysing this relationship. Research has predominantly used dichotomous measurements for EIM, yet this fails to consider the substantiveness of the approach. This paper develops a multifaceted scoring system to measure the substantiveness of a company's approach to EIM. Using a sample of 58 UK-based publicly-listed M&C companies, the measurement analyses how a substantive approach to EIM affects EP. Correlational tests showed a medium, positive relationship. This implies companies may not need to choose between EIM and profit. The findings and the multifaceted measurement developed have implications for research, stakeholders, and high-level leadership teams.

Keywords: environmental impact mitigation; EIM; economic performance; manufacturing; construction; sustainability; multifaceted scoring system; return on assets; female leadership; carbon disclosure project; CDP; corporate purpose and values; ISO 14001; UK.

DOI: 10.1504/IJESD.2025.142995

International Journal of Environment and Sustainable Development, 2025 Vol.24 No.1, pp.69 - 93

Received: 21 Feb 2023
Accepted: 16 Nov 2023
Published online: 02 Dec 2024 *

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