How to integrate environmental impacts in investment processes of companies
Besides financial goals, companies increasingly start formulating strategic environmental goals. However, the management and control of these goals remains a challenge. Therefore, this thesis has developed an integrated investing method which is able to systematically integrate financial and environmental data in investment processes of companies.
This new integrated investing method is applied in seven case studies within the Volkswagen Group to verify the method’s practical applicability as well as its ability to manage and control strategic environmental and financial goals.
This dissertation contributes to the development and application of a new integrated investing method that aims to ensure a sufficient degree of scientific quality and practical applicability. With the help of this method, it is able to systematically integrate environmental impacts in investment processes of companies in order to manage and control the achievement of strategic environmental and financial goals.
How to integrate financial and environmental data in investment processes to achieve strategic environmental and financial goals of companies?
Integrated Investing method – Structure of the dissertation
To describe the current state of academic knowledge and business practice, it is necessary to deal with the main object of this thesis which is the investment process. Hence, the second chapter comprises an introduction to the investment process within companies as well as the most common conventional investment appraisal methods. The second part of this chapter discusses current methods aiming to integrate environmental impacts in investment decisions. The discussion intends to identify reasons for their immaturity in practical application with the help of a deficit analysis.
Based on the results of the deficit analysis and current academic literature on method development, a set of requirements, ensuring sufficient scientific quality on the one hand and practical applicability on the other hand, is intended to be developed in the third chapter. Thus, the first two sub-research questions are answered within the first part of the third chapter. Moreover, the third chapter aims to identify and evaluate additional methods which might serve as a basis for the development of the new integrated investing method. The result of the evaluation of the identified methods according to the requirements provides the answer to the third sub-research question. The final part of the third chapter intends to comprise the development of the new integrated investing method.
The result of the method development process is described in the fourth chapter containing the description of the new integrated investing method. This method description is structured along the previously identified main object of this dissertation in form of the investment process in companies.
After having developed the new integrated investing method, the fifth chapter intends to apply the method in real life business context in order to provide an answer to sub-research question four. Moreover, this method application chapter intends to verify the method’s practical applicability on the one hand and its ability to manage and control environmental goals of an existing company on the other hand.
Finally, the validity and reliability of the results are discussed in chapter six to finally provide the conclusion and recommendations for further research within the subsequent chapter. Within this last chapter, the main research question of this thesis is going to be answered as well.
The methodological structure of this dissertation is also illustrated in the following figure: