Consistency and credibility?

The first part of this work explores the correlation between actual environmental performance, physical environmental performance indicators, and corporate environmental reporting in Germany and the UK’s paper and electricity industries. Findings indicate that environmental performance is largely influenced by country-specific factors, likely due to variations in environmental legislation. This suggests that assessments of the relationship between environmental and economic performance must rely on actual environmental performance data rather than reporting quality or the intensity of specific tools, like environmental performance indicators, as proxy variables. The second part delves into the relationship between environmental and economic performance. It concludes that firms in environmentally intensive industries often struggle to establish a positive connection between their environmental and economic outcomes. Market conditions and strategic considerations play a role, but situational factors ultimately determine which influences prevail. This work offers valuable insights for practitioners and academics regarding the interplay between environmental reporting and performance measurement, as well as its impact on economic success. It provides strategic insights into how pursuing corporate sustainability can drive business success and highlights critical factors for achieving this goal.