This study examines the relationship between carbon emissions and the financial performance of companies listed in Brazil's Carbon Efficient Index (ICO2). Employing econometric techniques on 2021 data from 73 companies, we find a positive correlation between CO2 emissions and financial metrics like Earnings per Share (EPS), Return on Equity (ROE), and Return on Assets (ROA). We employed descriptive statistical methods for this study using ordinary least squares (OLS) and generalized least squares (GLS) estimation models. The econometric analysis software Gretl was used for linear regression analysis. The study found that, on average, companies with higher CO2 emissions had better financial performance regarding EPS and ROE. However, the relationship between carbon emissions and financial performance is complicated, and the results should be interpreted cautiously, considering the study's limitations. However, our findings challenge the notion of a simple positive association. We highlight the need for sectoral analysis, as different industries may exhibit varying relationships between emissions and financial health. Additionally, company location plays a role, with regulations and economic contexts influencing this connection. We acknowledge limitations, including using single-year data and potential industry-specific discrepancies. Future research should explore a broader dataset, analyze companies within their specific contexts, and consider the influence of macroeconomic factors and regulations. This study contributes to the ongoing debate on carbon emissions and financial performance. We emphasize the importance of a nuanced approach, acknowledging the potential for a "carbon-performance paradox" in specific sectors and highlighting the role of market forces in driving a low-carbon transition.

This study investigates greenwashing in the Brazilian corporate sector by analysing the gap between companies' sustainability claims and their actual practices. We introduce a novel, AI‐powered methodology based on Decoupling Theory to detect greenwashing. Our approach triangulates three distinct data sources from 2022 to 2023: (i) internal corporate discourse (ESG reports quantified via machine learning); (ii) external market perception (Merco ESG reputation index); and (iii) actual environmental practice (objective greenhouse gas (GHG) emissions data). Our econometric analysis reveals a significant discourse‐practice gap, providing strong evidence of greenwashing. We found a substantial misalignment between companies' AI‐calculated ESG scores and their external reputation rankings, with only a small fraction of firms showing consistency. More strikingly, the analysis uncovered a paradoxical positive correlation between environmental discourse and emissions: a 1% increase in a company's AI‐calculated environmental score is associated with an approximate 5.24% increase in its GHG emissions. This suggests that environmental disclosures may serve as a tool for image management rather than reflecting tangible emission reductions. These findings empirically validate key facets of greenwashing theory within an emerging market context. The results underscore the urgent need for more robust regulation, mandatory standardized reporting, and independent verification to mitigate deceptive environmental claims and foster genuine corporate sustainability.

This study analyzes the relationship between environmental, social, and governance (ESG) performance and corporate reputation among Brazilian companies listed in the 2023 Corporate Reputation Monitor (MERCO). Using quantitative methods—descriptive and inferential statistics combined with cross‐sectional linear regression—the research examines how ESG performance and ESG risk indicators relate to firms' reputational standing. The sample comprises 46 companies from different sectors, and the results reveal a positive and statistically significant association between ESG performance and corporate reputation. This finding underscores the strategic role of ESG practices in strengthening market image, aligning corporate behavior with social and environmental expectations, and fostering stakeholder trust. The study has some limitations. It focuses on a single year (2023), which may capture post‐COVID‐19 volatility and relies on a relatively small sample restricted to MERCO‐listed firms and a limited set of ESG data providers, which may constrain the generalizability and robustness of the results. Future research should adopt a multi‐year perspective, incorporate additional ESG rating agencies, and explore sector‐specific dynamics, particularly in highly exposed industries such as banking, petrochemicals, and agribusiness. Overall, the study contributes to the sustainability and business‐strategy literature by showing that investment in ESG initiatives not only benefits society and the environment but also reinforces corporate reputation, competitive positioning, and long‐term value creation.

This study investigates the complex relationship between geopolitical risk and food inflation, a critical issue for global food security. Using panel data from 177 countries from 2019 to 2021, the research employs a random effects estimation model to analyze the dynamic. The central aim is to ascertain if countries with higher geopolitical risk also experience greater food inflation. The analysis confirms a positive correlation, where increased country instability is associated with higher food inflation. The study also reveals a counterintuitive positive relationship between GDP per capita and food inflation, challenging common economic assumptions. These findings have significant implications for economic policy and international cooperation, highlighting the need for strategies to mitigate the impacts of geopolitical instability on food prices and bolster food security.

Illegal gold mining has emerged as a major sustainability threat in the Amazon, eroding Indigenous rights, forest integrity, and climate mitigation efforts. This study examines how international market incentives relate to the expansion of illegal mining and associated deforestation within the Yanomami Indigenous Territory (YIT) from 2008 to 2022. Using annual data and log–log OLS specifications, we document a strong positive association between Brazil's gold export value and mining pressure in the YIT: increases in export value are accompanied by proportionally larger increases in mined area. We also find that greater mining pressure is associated with higher deforestation, indicating that mining expansion is linked to forest loss within the territory. By contrast, higher GDP per capita is associated with lower mining pressure, suggesting that improved local economic conditions may reduce vulnerability to illicit extractive activity. Beyond domestic enforcement constraints, we argue that gaps in international due diligence and limited traceability facilitate the entry of illicit gold into formal supply chains, externalizing socio‐environmental costs onto Indigenous lands. The study contributes to sustainability research on global commodity chains by connecting trade incentives, institutional fragility, and environmental degradation, and it derives policy implications for enforceable traceability, accountable sourcing, and SDG‐aligned governance reforms.