How the Mitigation of Environmental Impacts affect Economic Performance in UK Manufacturing and Construction Companies

Manufacturing and construction (M&C) companies cause significant environmental impacts and are under pressure to act. Despite research analysing the relationship between environmental impact mitigation (EIM) and economic performance (EP), findings remain inconclusive. Acknowledging the longevity of the M&C sector, and the uptake of ISO 14001 in UK companies, there is a lack of research analysing this relationship. Research has predominantly used dichotomous measurements for EIM, yet this fails to consider the substantiveness of the approach. This paper develops a multifaceted scoring system to measure the substantiveness of a company's approach to EIM. Using a sample of 58 UK-based publicly-listed M&C companies, the measurement analyses how a substantive approach to EIM affects EP. Correlational tests showed a medium, positive relationship. This implies companies may not need to choose between EIM and profit. The findings and the multifaceted measurement developed have implications for research, stakeholders, and high-level leadership teams.