Outperforming Peers Through A Comprehensive Climate Change Strategy: The Case of Electric Utilities

Firms increasingly aim to combat climate change. For corporate managers,the question whether a related strategy affects financial performance arises. Sinceempirical research on this topic is rather sparse, this study investigates whetherpursuing a corporate climate change strategy leads to better corporate financialperformance. By applying paired samples t-tests, a sample of 62 companies fromthe electric utilities sector matched in pairs is investigated over a five-year timespan. Results indicate that firms with a comprehensive climate change strategypredominantly perform significantly better than their competitors without such astrategy. These findings might contribute to promoting climate change strategies ina corporate context.