Greenhouse gas emissions and firm performance in India: the moderating role of environmental certification

Purpose This paper aims to investigate the impact of greenhouse gas (GHG) emissions and their components on the firm performance (FP) of select Indian companies. Design/methodology/approach The sample is 100 large Indian firms from 2019–20 to 2021–22. Panel data and quantile regression models are employed to examine the issues. Findings There is a negative relationship between GHG emissions and financial performance. Further, this relationship is heterogeneous at different levels of financial performance. However, environmental certification fails to moderate the relationship. Research limitations/implications The study focuses on the top 100 Indian listed companies over three years. Practical implications The results highlight the need for management to reduce GHG emissions to improve the financial performance of the firms. Regulators and policymakers may develop guidelines for implementing environmental certification in India. Social implications The study reveals the existence of stringent environmental regulations for limiting GHG emissions. Originality/value This study in India explores the moderating impact of environmental certification on the GHG emissions–FP relationship and investigates the influence of GHG emissions at different locations of the distribution of firm performance by using quantile regression.