SMEs' Environmental Attributes and Performance: A Data Integration Approach

This study investigates the association between SMEs' green strategies and financial performance. We examine over 30,000 firms across 32 countries and conduct statistical matching using information from the Flash Eurobarometer surveys alongside Orbis Europe to address SMEs' sustainability data scarcity. After addressing endogeneity concerns and sample selection bias, we find that offering green products or services and having green employees lead to superior financial performance as measured by the firm's return on asset. While undertaking resource-efficient actions at best do not impact financial performance.