You are cordially invited to attend the next CEGE4ALL: Service Management & Performance Seminar by Rodrigo Cestau Oyhantçabal, on “Science Based Targets initiative and Firm Greenhouse-Gas Emissions: Evidence from Dynamic Panel Estimates”.
Venue: Católica Porto Business School, Paradise Building, Room EP004
Date: 7 November
Time: 11:30 a.m. - 12:30 p.m.
Format: hybrid (online or in-person)
Please register here by November 6th
We examine whether firms committing to the Science Based Targets initiative (SBTi) reduce greenhouse-gas (GHG) emissions more than non-adopters. Using a panel of 802 publicly listed firms from 2015–2023, we estimate dynamic emissions models via system GMM to address endogeneity in SBTi adoption and serial persistence. SBTi commitment is associated with a 2.7% short-run and 16.3% long-run reduction in emissions. Heterogeneity analyses show no statistically significant differences across headquarters regions. Splitting industries by energy intensity, reductions appear concentrated in energy-intensive sectors (≈ −3.8% short-run). Within energy-intensive sectors, European firms show a significant reduction relative to non-certified peers, but regional differences are not statistically distinct. Results are robust across alternative instrument sets and specifications. Taken together, the evidence is consistent with SBTi commitments being associated with meaningful firm-level emissions reductions, subject to the maintained identification assumptions of system GMM.
Rodrigo Cestau Oyhantçabal is a PhD candidate in the Doctorate in Economics, Management
and Organization, a joint program of Universidad Pública de Navarra, Universitat Autònoma de Barcelona, and Universitat de les Illes Balears. His research lies in environmental and energy economics, with a focus on how environmental management certifications affect firm-level environmental performance.
