Research Article
Quantifying Sustainability-aligned Revenues: From Public to Private Market Approaches
Ashim Paun*
Issue:
Volume 14, Issue 2, June 2025
Pages:
24-33
Received:
7 May 2025
Accepted:
21 May 2025
Published:
21 July 2025
Abstract: Are more sustainable companies also more profitable? Against a backdrop of greater disclosure in sustainable finance regulation, particularly in the European Union, there has been considerable focus on indicators of environmental, social and governance performance in corporate operations. This focus on the systems and processes which companies have in place - which enable them to produce, manufacture, distribute or deliver a service in ways which limit negative sustainability outcomes - is about de-risking operations and value protection. The ‘other side’ of sustainability in markets is about opportunities and value creation. Public market research from banks and market data firms has analysed correlation between stock price performance and revenues derived earned from sustainability-aligned activities. This question is less easy to answer in private markets, where relevant data is not typically aggregated across firms. Thus, such analysis is largely missing in relation to companies held in the portfolios of private equity investors. This paper draws on a proprietary means of collating data for private equity investments, via which revenues are demarcated to 37 sustainability trends, and finds a relatively weak degree of positive correlation - that across 50 companies, those with revenues which experience greater support from sustainability-linked drivers are slightly more likely to also achieve greater EBIT (earnings before interest and taxes) margins. If the result of the research for this paper were to be replicated for a larger sample, and therefore at a more statistically significant scale, it is the author’s belief that this would demonstrate a high likelihood that companies which derive a greater share of revenues from products and services which are solutions to sustainability challenges, are also able to be more profitable. This would, in turn, be valuable to such companies and industries in attracting lower-cost capital, facilitating growth and accelerating the speed at which economies and societies can address environmental challenges and crisis.
Abstract: Are more sustainable companies also more profitable? Against a backdrop of greater disclosure in sustainable finance regulation, particularly in the European Union, there has been considerable focus on indicators of environmental, social and governance performance in corporate operations. This focus on the systems and processes which companies have...
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Research Article
Factors Affecting Market Participation Decision and Level of Commercialization Among Teff Producers in East Shewa Zone, Oromia Region, Ethiopia
Asfaw Negesse Senbeta*
Issue:
Volume 14, Issue 2, June 2025
Pages:
34-43
Received:
25 January 2025
Accepted:
15 July 2025
Published:
4 August 2025
Abstract: The government of Ethiopia implemented agricultural commercialization clusters with the primary goal of commercialization of smallholders’ agriculture and agro-industrial development, offering a strategic entry point for private sector engagement. This study was aimed to identify of status Teff commercialization, factors influencing farmers’ market participation decision and level of Teff commercialization in East Shewa Zone. A two-stage random sampling procedure was used to select 122 sample households Teff producer. Descriptive statistics and econometric model were used to analyze the data. The result revealed that about 69.67% sample households were market participant in Teff production. The average intensity Teff commercialization were 37.3%. The result of probit model indicated that experience of Teff production, lagged price of Teff, land allocated for Teff production and participation in social organization positively influenced household head Teff market participation decision. In the second hurdle truncated, the level of Teff commercialization significantly and positively influenced by education level, experience in Teff production and lagged price of Teff while distance to market center influenced it negatively. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate in social organization, improving farmers capacity development through practical training and improving farmers experience through arrangement experience sharing among farmers so as to improve Teff market participation decision and intensity of commercialization.
Abstract: The government of Ethiopia implemented agricultural commercialization clusters with the primary goal of commercialization of smallholders’ agriculture and agro-industrial development, offering a strategic entry point for private sector engagement. This study was aimed to identify of status Teff commercialization, factors influencing farmers’ market...
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