The Impact of Water and Energy Performance on Waste Performance in South African JSE-Listed Companies

Abstract

This study examines whether enhanced environmental metrics—specifically, energy and water—lead to improved waste management. There is a limited body of existing literature on this topic, specifically within the context of African business contexts. Moreover, the available global studies present inconclusive findings regarding the association between these variables. The study utilises panel quantile regression methodology to examine the dataset, including South African companies listed on the Johannesburg Stock Exchange (JSE) from 2012 to 2021. In the independent single equations, it is apparent that the three regressions for market value (MFV), return on equity (ROE) and TOBIN’S Q (TBQ) illustrate that both water (WTPF) and energy performance (EPF) demonstrate a significantly positive relationship with waste performance (WSPF). Moreover, MFV, ROE and TBQ demonstrate significantly negative outcomes to WSPF in the three equations. When interaction terms are added, the three regressions for MFV, ROE and TBQ prove that the interaction term between EPF and WTPF to WSPF is significantly positive. In addition, the interaction term involving energy and MFV to WSPF is significantly positive. The interaction term between water and MFV to WSPF is significantly positive. The interaction term pertaining to water and ROE to WSPF is significantly negative. The interaction term between water and TBQ to WSPF is significantly positive. Policymakers should promote integrated resource management strategies that combine water and energy efficiency efforts to reduce waste. Incentives should be given to invest in technologies that improve performance simultaneously. Corporate transparency and targeted support may be needed to ensure resource efficiency does not negatively impact short-term profitability.