The Impact of Accounting for the Environmental Element of ESG on Treasury Performance in U.S. Chemical Manufacturing Companies, 2023–2024: An IFRS S1 and S2 Perspective

This study examines the impact of environmental ESG accounting, aligned with IFRS S1 and S2 standards, on treasury performance in four U.S. chemical manufacturing companies: Dow Inc., DuPont de Nemours, Inc., Eastman Chemical Company, and LyondellBasell Industries. Using a comparative case study approach, we analyze publicly available data from 2023 to assess how environmental performance influences treasury metrics such as weighted average cost of capital (WACC), liquidity (current ratio), and return on equity (ROE). Findings indicate that robust environmental accounting, particularly strong IFRS S1/S2 compliance, correlates with lower WACC (by up to 0.7%) and higher ROE (by up to 1.5%), with Dow Inc. and Eastman Chemical outperforming due to comprehensive emissions reporting. These results highlight the financial benefits of environmental transparency in treasury management within the chemical sector.