The impact of biodiversity score on the European firm’s performance

This study aims to contribute to the corporate-environment nexus by investigating the impact of biodiversity scores on firms’ financial performance. Employing a panel model applied to 36 European firms, we find a positive and statistically significant relationship between the Biodiversity Impact Reduction Score and financial performance and firm value. These findings highlight the financial advantages of effective biodiversity management, improving operational efficiency and strengthening investor confidence. Our results offer useful insights for both corporate decision-makers and the academic community, shedding light on the economic implications of biodiversity-related risks