Empirical Study on the Effect of Corporate Eco-Efficiency on the Profitability of Nigerian Breweries Plc

Abstract

The study is carried out to empirically examine the effect of corporate eco-efficiency on the profitability of Nigerian Breweries plc. An ex –post facto research design approach was adopted for the study. The population of this study comprises of all the firms in brewery industry in Nigeria. Using a panel data for the period of ten (10) years 2008 to 2017, Nigerian Breweries plc was chosen as sample based on the firms’ position as a pioneer, largest brewing company and key player in the industry. Secondary data were obtained from the annual /sustainability reports of the company from 2008 to 2017 financial year. Three hypotheses were formulated and tested in the course of this study. Regression analysis by aid of SPSS v.21 was used to test for statistical effect of the corporate eco-efficiency on the profitability. The results showed that there is positive significant effect of energy efficiency on the profitability of Nigerian Breweries plc.This study further revealed that there is a statistical positive and significant effect of the water utilization (WU) efficiency on the profitability of Nigerian Breweries plc. Finally, the result also established that there is a statistical positive and significant relationship between the Greenhouse Gas (GHG) emission management and the profitability of Nigerian Breweries plc. Consequent upon the findings, this study recommends among others; that the managers of Brewers should improve in the management of the combined energy usage by the installation of economizers in boiler chimneys and other modern gas-enabled burners.They should also embark on local or national imp-active water balancing Program and construction of wastewater treatment plant in its various branches across Nigeria. The management of Brewers should consider using less fossil fuel for energy and steam generation as well as increased application of solar-powered street lighting to reduce CO₂ emission.

Keywords: Eco-efficiency, Sustainability reporting, profitability, Nigerian Breweries plc

DOI: 10.7176/EJBM/11-20-01

Publication date:July 31^st 2019