The measurement of corporate environmental performance and its application to the analysis of efficiency in oil industry

This paper addresses a measurement of corporate environmental performance, and its application to the analysis of efficiency in the petroleum firms. In order to measure firms' environmental performance, we suggest a framework called “Gscore” that consists of five categories, namely general envi...

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Bibliographic Details
Published inJournal of cleaner production Vol. 9; no. 6; pp. 551 - 563
Main Authors Jung, E.J, Kim, J.S, Rhee, S.K
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.01.2001
Subjects
Efficiency analysis
Environmental performance
Measurement
Oil industry
Measurement
Oil industry
Environmental performance
Efficiency analysis
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Summary:This paper addresses a measurement of corporate environmental performance, and its application to the analysis of efficiency in the petroleum firms. In order to measure firms' environmental performance, we suggest a framework called “Gscore” that consists of five categories, namely general environmental management (GEM), input, process, output, and outcome. Gscore is a proxy measure of corporate environmental performance based on voluntary environment, health, and safety (EHS) report and is calculated by aggregating the points of the above five-categories. We apply our measurement framework to the data of 39 firms' voluntary EHS reports which are available on the internet. Ten of them, on which efficiency analysis was conducted with Gscore, assets, employee, and profits, are in petroleum and refining industry. According to our results: (1) a gap is found between rhetoric and practical environmental management stemming from calculating the relation between GEM and data part in 39 EHS reports. (2) On the whole, EHS reports of petroleum firms have something in common, but there are significant differences in the type and amounts of disclosed data among the EHS reports. (3) From the results of efficiency analysis, it is found that the number of employee exerts a considerable influence on determining the relative efficiency of petroleum firms, then Gscore, profits, and assets in sequence. Furthermore, Exxon, Ashland, Phillips Petroleum, and ARCO are shown to be efficient among 10 petroleum firms.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0959-6526
1879-1786
DOI:10.1016/S0959-6526(01)00011-7