Measurement of corporate carbon management with item response theory
Ladygina, Iana (2021)
Pro gradu -tutkielma
Ladygina, Iana
2021
School of Business and Management, Kauppatieteet
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021062139291
https://urn.fi/URN:NBN:fi-fe2021062139291
Tiivistelmä
Climate change is one of the critical emerging issues of our time that requires our attention. The main driver of this issue is an increased amount of carbon emissions produced by an enormous number of companies all over the world. Environmental, Social and Governance Ratings are most commonly used as the measurement of corporate commitment to reduce emissions, however, another approach such as an item-response theory can be found valuable to assess the level of corporate carbon management. There is a number of research studies conducted in the field of Corporate Social Responsibility, Environmental Management, Environmental Sustainability, and Supply Chain Sustainability that are based on the application of item-response models. However, there is a lack of research related to the development of Carbon Management measure with the item-response theory.
This research study develops a Carbon Management score by applying the two-parameter logistic item-response model on data collected from Carbon Disclosure Project and Refinitiv Eikon database for 3105 companies over 10 years from 2009 to 2018. Selected items for the analysis have been identified in terms of item’s discrimination and item’s difficulty parameters. Based on the identified latent characteristics of companies, Carbon Management measure is created. The development of constructed measure is further analyzed with the development of Environmental and Emission scores from 2009 to 2018 years.
The results of this thesis work show that the development of Carbon Management has been increasing from 2010, which means that companies started to make the effort towards mitigation of carbon emissions. The development of Carbon Management varies among industry sectors. The developed measure is highly positively correlated with the Environmental and Emission scores. Nevertheless, there are some outliers detected that would require further analysis.
This research study develops a Carbon Management score by applying the two-parameter logistic item-response model on data collected from Carbon Disclosure Project and Refinitiv Eikon database for 3105 companies over 10 years from 2009 to 2018. Selected items for the analysis have been identified in terms of item’s discrimination and item’s difficulty parameters. Based on the identified latent characteristics of companies, Carbon Management measure is created. The development of constructed measure is further analyzed with the development of Environmental and Emission scores from 2009 to 2018 years.
The results of this thesis work show that the development of Carbon Management has been increasing from 2010, which means that companies started to make the effort towards mitigation of carbon emissions. The development of Carbon Management varies among industry sectors. The developed measure is highly positively correlated with the Environmental and Emission scores. Nevertheless, there are some outliers detected that would require further analysis.