Green Energy Patents Boost Company Profitability
For nuclear energy, the increase can be up to 1.6%
An ESG strategy—Environmental, Social, and Corporate Governance—not only helps preserve the environment but can also generate tangible income. Thus, the use of renewable energy sources (RES) and green technologies in the energy sector enhances return on investment and profitability. In contrast, higher CO2 emissions result in lower financial performance. This has been demonstrated in a collaborative study by the HSE Faculty of Economic Sciences and the European University at St. Petersburg. Their findings have been published in Frontiers in Environmental Science.
In recent years, green energy technologies have made significant advancements. Governments and businesses invest hundreds of billions of dollars in developing renewable energy sources (RES), nuclear energy, and electric transportation. In 2020, their share accounted for 40% of all investments in the energy sector, totalling $400 billion. In the European Union, spending on green energy is 3.5 times higher than on traditional energy. Meanwhile, China has reduced investments in the gas and oil sectors by 40% to focus on developing RES. Increasingly, research demonstrates that adopting green technologies can have a positive impact on company profitability.
Elena Makeeva, Associate Professor at the HSE Faculty of Economics, Konstantin Popov, Research Assistant at the HSE Corporate Finance Centre, and Olga Teplova, Research Fellow at the European University at St. Petersburg, have investigated how investments in green energy impact the profitability of energy companies in the BRICS countries. The researchers studied 63 largest firms in the BRICS countries and examined their key financial performance indicators, including return on assets (ROA), return on invested capital (ROIC), and market capitalisation.
CO2 emissions and patents related to three primary types of green energy—renewable energy technologies, combustion technologies with mitigation potential, and nuclear energy technologies—were considered as independent variables. China leads among BRICS member countries in all types of patents, with its share reaching 94% for patents in the field of renewable energy and 89% for patents related to hybrid energy systems.
The model also incorporated the company's revenue and investments, along with the per capita GDP of the company's home country, as controls. The authors constructed several models to establish a connection between investments in green technologies, carbon dioxide emissions, and the return on assets and investments, and market capitalisation of companies.
They have found that higher CO2 emissions significantly reduce company profitability and negatively affect market capitalisation: a 1% increase in carbon dioxide emissions results in nearly a 2% decrease in company profitability. The return on investment decreases even further, by 5% to 7%, along with a decrease in market capitalisation. Conversely, the more 'green energy' patents a company registers, the greater its profitability. The return on assets increases by 0.7% on average, and patents in the field of nuclear energy result in the largest increase of up to 1.6%. The return on investment has been found to increase by 2% to 3%. The researchers note that patents for renewable energy technologies contribute significantly only to ROIC, whereas combustion technologies with mitigation potential and nuclear technologies positively influence all financial performance indicators of companies. The authors also advocate for further advancements in nuclear power technology, since a nuclear power plant is a powerful, stable, and low carbon energy source with a long operational lifespan.
However, it should be noted that investments in green energy typically involve long-term commitments and do not yield immediate financial returns. This study demonstrates that businesses prioritising social and environmental responsibility in their operations can eventually achieve significant profits.
Associate Professor, Faculty of Economics, HSE University
The development of green energy should be a priority for BRICS countries, and investing in infrastructure and improving legislation are crucial factors for an expansion of low-carbon technologies in the electric power industry.
See also:
Men Behind the Wheel: Three Times More Violations and Accidents than Women
Men are three times more likely than women to commit traffic violations while driving and to be involved in accidents. Moreover, they are more likely to create situations on the road that are highly dangerous to others. Men are also twice as likely to drive under the influence and nearly one-third more likely to receive a prison sentence for reckless driving. Perhaps it comes down to cultural norms and the different attitudes men and women have toward driving. These are the conclusions reached by Anton Kazun, Assistant Professor at the HSE Faculty of Economic Sciences, and Research Assistant Mikhail Belov.
HSE Scientists Discover How to Predict Charitable Behaviour Through Physiological Reactions
Researchers at the HSE Institute for Cognitive Neuroscience have investigated how the emotional impact of advertising affects the amount people willing to donate to support animal welfare. To accomplish this, the researchers measured physiological responses such as heart rate, electrodermal activity, and facial expressions in individuals viewing various photos of dogs. The findings indicate that willingness to donate is most accurately predicted by heart rate and facial muscle activation. The study has been published in Social Psychology.
'We Are Creating the Medicine of the Future'
Dr Gerwin Schalk is a professor at Fudan University in Shanghai and a partner of the HSE Centre for Language and Brain within the framework of the strategic project 'Human Brain Resilience.' Dr Schalk is known as the creator of BCI2000, a non-commercial general-purpose brain-computer interface system. In this interview, he discusses modern neural interfaces, methods for post-stroke rehabilitation, a novel approach to neurosurgery, and shares his vision for the future of neurotechnology.
First Successful Attempt in 55 years: Physicists in Russia and Germany Confirm 1969 Experiment Results
A team of researchers, with the participation of physicists from HSE University, replicated the 1969 experiment on superconductivity and its properties. The scientists induced superconductivity by deliberately deteriorating the interfaces between the layers of superconductors and ferromagnets in the system, resulting in better performance of spin valves compared to the classical version, where the interfaces between the layers are ideal. This approach could lead to the development of more efficient devices for data storage and computing. The study findings have been published in the Beilstein Journal of Nanotechnology.
Healthy Nutrition Saves Public Funds: Strategies to Reduce Healthcare Costs in Russia
In Russia, the annual cost of treating type 2 diabetes alone exceeds 500 billion roubles. Promoting healthy nutrition programmes can ease the burden on the healthcare system and increase life expectancy. This was the conclusion reached by economists at HSE University after analysing global experiences with government involvement in promoting a healthy lifestyle.
Conscientious Individuals Live Longer
Personality traits such as conscientiousness, emotional stability, and an internal locus of control significantly influence one's lifestyle and longevity. Not only can personality traits influence health through beneficial and harmful habits but can also have a direct effect on mortality. Higher conscientiousness reduces the risk of premature death by 20 percentage points, while higher neuroticism increases it by 12 percentage points. These are the findings from a new study by Ksenia Rozhkova, Junior Research Fellow at the Laboratory for Labour Market Studies of the HSE Faculty of Economic Sciences.
Esports Players Play Better Online
In competitions, esports players, like other athletes, face stress and show worse results due to pressure. A substantial decrease takes place in the performance of esports players during overtime. This effect, however, is significantly mitigated in online competitions compared to live events—the difference can reach 30%. A study by a team of authors from HSE University’s Moscow and Perm campuses and European University Viadrina (Germany) explores the phenomenon of choking under pressure within the context of esports. The study was published in the Journal of Economic Behavior & Organization.
Analysing Genetic Information Can Help Prevent Complications after Myocardial Infarction
Researchers at HSE University have developed a machine learning (ML) model capable of predicting the risk of complications—major adverse cardiac events—in patients following a myocardial infarction. For the first time, the model incorporates genetic data, enabling a more accurate assessment of the risk of long-term complications. The study has been published in Frontiers in Medicine.
A New Tool Designed to Assess AI Ethics in Medicine Developed at HSE University
A team of researchers at the HSE AI Research Centre has created an index to evaluate the ethical standards of artificial intelligence (AI) systems used in medicine. This tool is designed to minimise potential risks and promote safer development and implementation of AI technologies in medical practice.
Russian Scientists Have Studied Marine Worm with Unique Spermatozoa
Russian scientists at Zhirmunsky National Scientific Centre of Marine Biology, HSE University, and Moscow State University have studied Phoronis embryolabi, a rare species of marine invertebrate found in the waters of the Sea of Japan. This species is notable for its unique reproductive system, which includes the development of larvae within the parent’s body and an unusual sperm structure. The study's findings contribute to our understanding of the evolutionary adaptations of marine organisms to extreme conditions. The study has been published in Zoologischer Anzeiger.