Sustainable Development

April 23rd, 2024

Bridging Sustainable Supply Chains with AI

When it comes to the renewable energy transition, all actors in the supply chain have different stakes, incentives and barriers. HEC Paris Professor Sam Aflaki aims to help organizations contribute to this renewable energy transition in the fields of supply chain management, sustainability and energy efficiency. In this interview, he discusses his ongoing research, exploring the dynamics of stakeholders' incentives, technological advancements, and the challenges shaping sustainable practices in today's world.

By Sam Aflaki

Sustainable Development

April 23rd, 2024

What Incites Companies to Invest in Green Technologies?

If companies anticipate that the government might impose caps on carbon emissions, they will likely invest in green technologies. This, in turn, drives down the cost of achieving reductions for all. That’s according to HEC Paris finance professors Augustin Landier and Bruno Biais. In “Emission Caps and Investment in Green Technologies,” the co-authors also show that if these firms don’t think carbon restrictions are coming, they won’t invest, and the government eventually will find it too costly to the economy to impose caps. In other words, companies’ expectations about future government action play a crucial role in reducing the carbon emissions driving rapid climate change. So, ask the researchers, how can a balance be found? 4 key findings: Anticipating future regulations spurs green technology investments, lowering emission reduction costs; Early investments in green technologies create a self-fulfilling prophecy, facilitating feasible emissions caps; Private and public actions synergize for desired outcomes through a complementary equilibrium; One large investor can have a significant influence.

By Bruno Biais , Augustin Landier

Sustainable Development

April 22nd, 2024

Aligning Corporate Lobbying with Planetary Boundaries

Millions of consumers, employees and investors are seeking to align their purchases, jobs and investments with their values. They want transparency and clear understanding of the brands they consume, work for, and invest in to be able to verify how they are contributing to sustainable development. Amid such a growing, unparalleled scrutiny, companies are increasingly held responsible for their business behavior, notably their environmental and social footprints. Yet there is one impact that is rarely discussed, as it remains hidden to the public eye. This is the ‘political footprint’ companies leave behind through the exercise of corporate political activities, be it lobbying or political contributions, and which often contradicts companies’ public statements.

By Alberto Alemanno

Sustainable Development

April 17th, 2024

How Investment Capital Could Induce Polluting Companies to Change for Good

Despite environmental, social, and governance (ESG) funds gaining popularity, their impact on reducing negative externalities, such as greenhouse gas emissions, may be limited if not approached strategically. In our study, entitled “Responsible Finance: How to Optimize Impact,” forthcoming in the Review of Financial Studies, we show that investment capital could actually influence the behavior of more highly polluting companies to drive positive change for the planet.

By Stefano Lovo , Augustin Landier

Sustainable Development

April 16th, 2024

Sustainable Cities Pave the Way for Successful Private Public Collaborations

Over the past decades, HEC Paris Professor Bertrand Quélin has investigated public-private partnerships and sustainable cities. These partnerships and initiatives are essential to integrating social, economic, and environmental objectives while ensuring equitable access to resources and services.

By Bertrand Quélin

Sustainable Development

March 26th, 2024

Going Circular to Align Business Models with Planetary Boundaries

The linear “take-make-waste” business model is a recipe for killing the planet. With global circularity at 7.2 %, supply chains create enormous amounts of waste, a vital driver of the triple planetary crisis of climate change, biodiversity loss, and pollution. Recent research by Daniel Halbheer (HEC Paris) and his colleagues Stefan Buehler (University of St. Gallen) and Rachel Chen (UC Davis) shows how going circular by recycling end-of-life products can improve profit and reduce the corporate waste footprint.

By Daniel Halbheer

Sustainable Development

January 15th, 2024

Is the Global Convergence of Sustainability Reporting Possible?

Companies are increasingly encouraged, or obliged, to report on their sustainability efforts. However, there is little harmonization across the many sustainability standard-setting organizations. In their latest study, Accounting Professors Hervé Stolowy and Luc Paugam of HEC Paris set out to create a picture of the status of sustainability reporting standards today, and what they really mean. Three key findings: Lack of standards harmonization: A significant lack of harmonization in sustainability reporting standards pose challenges for consistent communication of companies' sustainability efforts. Diverse objectives: Standard-setting organizations have diverse objectives, complicating efforts to establish a globally standardized approach to sustainability reporting. Carbon emissions disclosure: One exception may be carbon emissions disclosure, with convergence in the greenhouse gas emission protocol being adopted by most organizations.

By Hervé Stolowy , Luc Paugam

Sustainable Development

September 07th, 2023

Innovating for Added Value in the Global Economy: Snapshots from Four Moroccan Industries

The world we live in is profoundly different to the one we knew four years ago. Disruption to long-established patterns reveal opportunities for developing countries to secure a bigger share of the global economy. A policy paper by Abdelmonim Amachraa, Portfolio Lead at OCP Fondation, and Bertrand Quélin, Strategy and Business Policy at HEC Paris, for the Policy Center for the New South looks at how Morocco can best integrate with global markets, analyzing the challenges and next steps.

By Bertrand Quélin , Abdelmonim Amachraa

Sustainable Development

February 10th, 2023

How Can Communication Boost the Adoption of Renewable Energy?

Wide-scale adoption of renewable energy is essential to ensure Europe decarbonizes its energy systems and meets its ambitious net-zero targets. But what motivates interested individuals to make the decision to invest? A recent study by Operations Management Professors Andrea Masini and Sam Aflaki (HEC Paris), Shadi Goodarzi (California State University and the University of Texas), and Behnam Fahimnia (University of Sydney Business School), sheds light on the influence of different communication sources on this process, with implications for policymakers, technology providers, and other sustainability stakeholders.

By Andrea Masini , Sam Aflaki

photovoltaic panels on house roofs-thumbnail

Sustainable Development

March 26th, 2021

Activist Hedge Funds: Good for Some, Bad for Others?

Recent news cast some doubts about the effects of shareholder activism on firms’ strategic orientation. Hence, the question: Do activist hedge funds help or harm the companies they target? Mark DesJardine of Pennsylvania State University’s Smeal College of Business and Rodolphe Durand of HEC Paris (members of the HEC’s Society & Organizations Institute) investigated the long-term effects of hedge fund activism on companies that get targeted by these activists. In their extensive research, they found the value of targeted companies spikes the first year after targeting but drops in later years relative to similar non-targeted companies. In addition, the authors found that being targeted by activist hedge funds put a halt to the broader investment portfolios and socially responsible efforts of companies.

By Mark Desjardine , Rodolphe Durand