Timo Busch

Timo Busch
University of Hamburg | UHH · School of Business, Economics and Social Sciences

Professor

About

100
Publications
45,949
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3,686
Citations

Publications

Publications (100)
Article
Superior corporate environmental performance (CEP) is considered to be an indication of well-managed firms. While previous empirical research has operationalized various environmental measurements, one aspect has remained under-scrutinized, namely, continuous improvement. We examine whether continuous CEP improvement is reflected in aggregated envi...
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We investigate the expectations of wealthy private investors regarding the impact and financial return of sustainable investments. Our paper focuses on the sustainable development goals (SDGs) as a framework for investors' attempts to create impact. We analyze the behavior of 60 high‐net‐worth individuals (HNWIs), a powerful yet overlooked investor...
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R&D intensity has been highlighted as an important factor in analyzing the relationship between corporate social (CSP) and corporate financial performance (CFP). However, the underlying mechanisms of how R&D intensity influences the CSP-CFP relationship have caused a great deal of confusion: first, while controlling for R&D intensity, studies have...
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Purpose This paper aims to empirically describe the general characteristics and the investment behavior of high-net-worth individuals (HNWIs) who pursue impact investing. Design/methodology/approach Data was collected from members of a global impact investor network, using an online questionnaire, a portfolio-data collection tool and semi-structur...
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Practitioners and academics have been using different terms to describe investments in the sustainability context. The latest inflationary term is impact investments—investments that focus on real-world changes in terms of solving social challenges and/or mitigating ecological degradation. At the core of this definition is an emphasis on transforma...
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The science is clear: climate change is real. In 2015, 195 countries adopted the global climate deal in Paris. Nonetheless, numerous well-organized conservative think tanks (CTTs) deny that climate change is happening. We ask what kind of counterclaims are used by climate-sceptic CTTs and to what extent these counterclaims change over time. We anal...
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To assess the robustness and sensitivity of the findings in Delmas, Nairn-Brich, and Lim, we conduct a replication and an extension study. In the replication, we use their research design but analyze another time frame. In our extension, we furthermore expand the geographical scope, and use another carbon performance measure as well as a different...
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This article asks how sustainable investing contributes to societal goals, conducting a literature review on investor impact—that is, the change investors trigger in companies’ environmental and social impact. We distinguish three impact mechanisms: shareholder engagement, capital allocation, and indirect impacts, concluding that the impact of shar...
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While business responses to climate change have been well researched on the organizational and institutional levels, the corporate strategic behavior on the microlevel-that ranges from proactivity to climate inaction-remain under-researched. This article explores the individual determinants that affect the sensemaking phases, scanning, interpretati...
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Corporate carbon performance (CCP) has become a central topic in political, financial, and academic domains. At the same time, several characteristics of CCP data, including comparability and consistency, remain unresolved. The literature has extensively covered issues regarding the comparability of CCP data from a firm‐internal perspective. Howeve...
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Research Summary Good corporate social responsibility (CSR) ratings can increase a firm's legitimacy and reduce its default risk. Yet, the interpretation of CSR varies between different countries. We investigate whether CSR ratings have a risk‐mitigating effect across different institutional contexts. We find that good CSR ratings have a general ri...
Article
Corporate carbon performance (CCP) has become an important topic in political, academic, and financial domains. However, two main challenges are associated with the quality of CCP data in general: comparability and consistency. The literature has covered extensively how firms internally gather and report CCP data, and it has highlighted the resulti...
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Over the past forty years, countless articles have been devoted to studying the relationship between corporate sustainability performance (CSP) and corporate financial performance (CFP). Nevertheless, little attention has been given to the dynamic perspective of CSP. A majority studies use static measures, capturing CSP as a level of performance at...
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Full-text available
Research Summary Good corporate social responsibility (CSR) ratings can increase a firm's legitimacy and reduce its default risk. Yet, the interpretation of CSR varies between different countries. We investigate whether CSR ratings have a risk‐mitigating effect across different institutional contexts. We find that good CSR ratings have a general ri...
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Climate adaptation has become an important topic for risk management in companies. This article investigates the usefulness of Industrial Ecology tools and concepts in this context. The conclusion is that the established tools and concepts were not designed with the purpose of assisting managers in the climate adaptation and related financial risk...
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Financial markets play a major role in contributing to the transition to a low-carbon economy. Although many initiatives and developments are taking place, this is just the beginning. In this article, we argue for a theory of change—a theory rooted in logics that will help financial markets play a key role in the transition to a low-carbon economy....
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Companies increasingly need detailed information on global impacts related to their products and services. This article describes a quantitative analytical approach that supports a better understanding of value-chain wide corporate sustainability performance. We use an extended multi-regional input-output model to analyse the global supply chains o...
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While mankind in the 21st century faces several sustainability challenges, many business practices remain on a nonsustainable pathway. At the same time, many scholars as well as managers consider maximizing shareholder wealth as the only business imperative. We argue that this situation calls for revisioning—that is, reorienting and redefining—what...
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For many decades, there has been a debate about the relation between corporate social/environmental performance (CSP) and corporate financial performance (CFP). Our study presents a review of academic research on this topic by applying a second‐order meta‐analysis. The data sample combines 25 previous meta‐analyses yielding a sample size of one mil...
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We use meta-analytical techniques to address the question“When does it pay to be green?” Existing meta-studies in this research field cover a range of ecological issues and synthesize a variety of environmental performance measurements. This precludes a detailed examination of how differences in measurement approaches account for variations in empi...
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This article reviews the effect of environmental, social and governance (ESG) criteria in financial markets. It shows that there is very little evidence for a link between ESG performance and financial outperformance, yet there is strong evidence for a link between ESG performance and the cost of capital. This result suggests that ESG performance i...
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Despite increasing pressure to address climate change, firms have been slow to respond with effective action. This paper derives a multi-level framework for a better understanding of why many firms are failing to reduce their absolute greenhouse gas emissions, which contribute to climate change. To explain the phenomenon of organizational inaction...
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Research summary: This article explores the relationship between corporate social irresponsibility (CSI) and financial risk. We posit that media coverage of CSI generates risk by providing conditions that increase the potential for stakeholder sanctions. Through analyzing an international panel of 539 firms during 2008–2013, we find that firms rece...
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Corporate carbon footprints (CCFs) are a core tool in greenhouse gas emissions reporting. Established approaches for CCF calculation are based on an internal perspective that requires detailed corporate information. However, many firms do not publish information about their emissions. We seek to close this data gap by estimating scope 1 and 2 CCFs...
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In recent years, uncertainty about climate change policies has deeply altered the competitive landscape of the automobile industry, and highlighted the key role that companies can play in reducing global CO2 emissions through technological innovation. Given the complexity of the innovation process in this industry, mainly due to an interactive rela...
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The relation between uncertainty related to environmental regulation and corporate investments has received considerable attention in the academic literature. Previous quantitative studies, however, have not distinguished between different types of perceived regulation-related uncertainty and do not consider the potential influence of prior investm...
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The search for a relation between environmental, social, and governance (ESG) criteria and corporate financial performance (CFP) can be traced back to the beginning of the 1970s. Scholars and investors have published more than 2000 empirical studies and several review studies on this relation since then. The largest previous review study analyzes j...
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Purpose – Investment advisors play a significant role in financial markets, yet the determinants of their behavior have not been explored in detail. The purpose of this paper is to explore the determinants of how actively advisors communicate about sustainable investing with their clients, and differences in the preferences of advisors compared to...
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This article explores the role of financial markets for sustainable development. More specifically, the authors ask to what extent financial markets foster and facilitate more sustainable business practices. The authors highlight that their current role is rather modest and conclude that, on the old paths, a paradoxical situation exists. On one han...
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Proceeding from three basic concepts of resource dependence theory – organizational effectiveness, interdependence and external control – we conducted a multiple-case study to investigate factors that facilitate and hinder sustainability management within supply chains. Our empirical observations highlight that focal firms do not necessarily transf...
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Despite their apparent interest, private investors are surprisingly disengaged from sustainable investing, an observation that has received limited scholarly attention. This theory building study draws on the theory of planned behaviour to conceptualize the decision-making process of private investors towards sustainable investing. Findings from li...
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The notion that sustainable investing (SI) has become a mainstream investment style is challenged by the observation that private investors appear substantially underrepresented in SI compared to institutional investors. This study empirically explores SI-barriers for private investors. We provide insights from interviews with High Net Worth Indivi...
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This study examines the effect of stakeholder pressure regarding environmental, social and governance (ESG) issues on firm risk. The measures are operationalized as a media-based index of stakeholder pressure and risk spreads on corporate bonds. Extending studies relating ESG related performance to firm risk, we argue that stakeholder pressure is a...
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Increasing awareness of climate change has deeply altered the competitive landscape of the automobile industry, pressuring its companies to come up with environmental innovations. From a resource-based perspective, this article investigates the effects of different environmental innovations on product-related environmental performance. We analyze p...
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In recent years, many firms have decided to adhere to a specific carbon norm, such as carbon neutrality or carbon labels, to show their commitment to climate change mitigation. Nevertheless, it is still unclear what it means when a firm sets a specific carbon norm. This article reviews the various kinds of carbon norms that have emerged and asks wh...
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The global financial crisis originated in the subprime mortgage market in the United States in 2008 and its effects spread to all of the world's major financial markets. Only governmental programs and subsidies have prevented an outright crash of the world economy. What can the financial crisis teach us about the impending carbon crisis? What is ne...
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This paper focuses on organizations and their management of climate risks. Climate risks stem from continued changes in climate means and the increase in frequency and intensity of extreme weather events. We ask whether companies also apply the usual process of corporate risk management to climate risks. In seeking to answer this question, we revie...
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This multiple case study analysis examines the extent to which five global car manufacturers apply carbon management strategies. Following a clear business strategy standpoint, the theoretical arguments are based on a framework developed by Orsato (2006). For this context, we highlight two key differences between carbon management and general envir...
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Climate change poses a challenge to politicians and business managers alike. Small- and medium-sized enterprises (SMEs) cannot ignore the potential impact of climate change and the related institutional adjustments on their daily business activities. They need to assess how both climate change mitigation and adaptation should be reflected in their...
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Dynamic and intensified changes in the global ecosystem result in significant disruptions to the natural environment. One of the most prominent examples of this is climate change and the resulting natural disasters. As firms are embedded within the natural environment, they need to adapt to any environmental disruptions that transpire. Using Swiss...
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This paper examines the relationship between disclosed corporate responses to climate change and stock performance on the European and US stock markets. Methodologically, we consider investor expectations and compare risk-adjusted returns of stock portfolios comprising corporations that differ in this indicator for environmental performance. In thi...
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Coping with uncertainty is a fundamental challenge for firms. One way they can respond is by building up strategic flexibility. By looking at airlines’ flexibility responses to regulatory uncertainty associated with their inclusion in the European Union Emission Trading Scheme, this article shows that firms can respond to regulatory uncertainty by...
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Efforts towards decarbonizing the energy system have to focus on individual actors within the system. Their current and potential future stake in energy consumption and contribution to climate change has to be analyzed when formulating energy policies targeting system-wide reduction efforts. Focusing on firms, this paper develops a framework for th...
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This study adds two new perspectives to the long-running debate regarding the linkage between corporate social performance (CSP) and corporate financial performance (CFP): First, we add the aspect of issue materiality and suggest research to put more emphasis on the question of how individual CSP issues can be assumed to systematically influence th...
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In management literature, many studies claim that there is a business case for companies to address climate change through adequate carbon management strategies. We argue that corporate carbon management is not limited to mitigation efforts internally but also comprises of supply chain optimisations, product-related improvements, and compensation a...
Chapter
In light of the recent financial crises, many economists and politicians claim that a paradigm change in modern capitalism is needed, from short-term profit maximization to a long-term value value-creating and value-maintaining strategy. In this context, scholars have emphasized stakeholder claims, institutional change, corporate responsibilities,...
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Many management studies analyze stakeholder pressures and corresponding corporate strategies in the context of the natural environment. This study investigates the role of the sources of stakeholder pressures and additional contextual factors for choosing an environmental strategy. By focusing on climate change as an important ecological challenge,...
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The role of uncertainty within an organization’s environment features prominently in the business ethics and management literature, but how corporate investment decisions should proceed in the face of uncertainties relating to the natural environment is less discussed. From the perspective of ecological economics, the salience of ecology-induced is...
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The dependency on carbon-based materials and energy sources and the emission of greenhouse gases have been recognized as major problems of the 21st century. Companies are central to the effort to grapple with these issues due to the large material flows they process and their capabilities for technological innovation. It is important, on the one ha...
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Zusammenfassung Die Verfügbarkeit fossiler Ressourcen und der Klimawandel verändern die Rahmenbedingungen des Wirtschaftens. Dieser Beitrag skizziert sich daraus ergebende „Carbon Constraints“ für Unternehmen und erläutert Ansatzpunkte für betriebliche Strategien zum Risikomanagement.
Article
While discussions about global sustainability challenges abound, the financial risks that they incur, albeit important, have received less attention. We suggest that corporate risk assessments should include sustainability-related aspects, especially with relation to the natural environment, and encompass the flux of critical materials within a com...
Chapter
Macro-economic statistics illustrate that economic growth and the use of natu- ral resources have not yet been sufficiently decoupled. Therefore the issue has to be considered: what are the reasons for this failure at the micro level? In or- der to improve the support for a company's decision-making process, three main requirements can be identifie...
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Climate change and its effects on business has become a focal discussion point in relation to corporate financial performance. As emissions trading is one of the closest and most self-evident influences on climate change, many companies have to face new financial constraints, especially in emissions-intensive sectors. However, these direct and indi...
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1) Overview A number of studies examine the relationship between the financial performance of firms and corporate sustainability (e.g. A few authors attempt to generalize the findings of these studies (e.g., Murphy, 2002; Orlitzky, Schmidt, & Rynes, 2003). Their outcomes indicate that research yielded mixed results regarding the link between sustai...
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The anticipation of the future development and uncertainty of the business environment is important for a company's investment planning. The issue of uncertainty is very prominent in sustainability literature, but it is less discussed of how to deal with uncertainties in the context of the natural environment and corporate investment planning. Furt...
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Management scholars have sought to answer the question: is there a financial payoff for ad-dressing ecological and social issues? We move beyond this question and include a time com-ponent for corporate financial performance (CFP) and a firm’s innovativeness in order to ask: when does it pay? Combining a contingency perspective with the resource-ba...
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In jedem Unternehmen gibt es Potenziale, um die eigene wirtschaftliche Position zu verbessern und sich gegen zukünftige Krisen abzusichern. Technische, organisatorische oder soziale Innovationen sind der Schlüssel zur dauerhaften Sicherung ihrer Wettbewerbsposition. Diese Broschüre soll kleinen und mittelständischen Unternehmen helfen, Bereiche zu...

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Projects (4)