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:
Scientists Test Asymmetry Between Matter and Antimatter
An international team, including scientists from HSE University, has collected and analysed data from dozens of experiments on charm mixing—the process in which an unstable charm meson oscillates between its particle and antiparticle states. These oscillations were observed only four times per thousand decays, fully consistent with the predictions of the Standard Model. This indicates that no signs of new physics have yet been detected in these processes, and if unknown particles do exist, they are likely too heavy to be observed with current equipment. The paper has been published in Physical Review D.
HSE Scientists Reveal What Drives Public Trust in Science
Researchers at HSE ISSEK have analysed the level of trust in scientific knowledge in Russian society and the factors shaping attitudes and perceptions. It was found that trust in science depends more on everyday experience, social expectations, and the perceived promises of science than on objective knowledge. The article has been published in Universe of Russia.
Scientists Uncover Why Consumers Are Reluctant to Pay for Sugar-Free Products
Researchers at the HSE Institute for Cognitive Neuroscience have investigated how 'sugar-free' labelling affects consumers’ willingness to pay for such products. It was found that the label has little impact on the products’ appeal due to a trade-off between sweetness and healthiness: on the one hand, the label can deter consumers by implying an inferior taste, while on the other, it signals potential health benefits. The study findings have been published in Frontiers in Nutrition.
HSE Psycholinguists Launch Digital Tool to Spot Dyslexia in Children
Specialists from HSE University's Centre for Language and Brain have introduced LexiMetr, a new digital tool for diagnosing dyslexia in primary school students. This is the first standardised application in Russia that enables fast and reliable assessment of children’s reading skills to identify dyslexia or the risk of developing it. The application is available on the RuStore platform and runs on Android tablets.
Physicists Propose New Mechanism to Enhance Superconductivity with 'Quantum Glue'
A team of researchers, including scientists from HSE MIEM, has demonstrated that defects in a material can enhance, rather than hinder, superconductivity. This occurs through interaction between defective and cleaner regions, which creates a 'quantum glue'—a uniform component that binds distinct superconducting regions into a single network. Calculations confirm that this mechanism could aid in developing superconductors that operate at higher temperatures. The study has been published in Communications Physics.
Neural Network Trained to Predict Crises in Russian Stock Market
Economists from HSE University have developed a neural network model that can predict the onset of a short-term stock market crisis with over 83% accuracy, one day in advance. The model performs well even on complex, imbalanced data and incorporates not only economic indicators but also investor sentiment. The paper by Tamara Teplova, Maksim Fayzulin, and Aleksei Kurkin from the Centre for Financial Research and Data Analytics at the HSE Faculty of Economic Sciences has been published in Socio-Economic Planning Sciences.
Larger Groups of Students Use AI More Effectively in Learning
Researchers at the Institute of Education and the Faculty of Economic Sciences at HSE University have studied what factors determine the success of student group projects when they are completed with the help of artificial intelligence (AI). Their findings suggest that, in addition to the knowledge level of the team members, the size of the group also plays a significant role—the larger it is, the more efficient the process becomes. The study was published in Innovations in Education and Teaching International.
New Models for Studying Diseases: From Petri Dishes to Organs-on-a-Chip
Biologists from HSE University, in collaboration with researchers from the Kulakov National Medical Research Centre for Obstetrics, Gynecology, and Perinatology, have used advanced microfluidic technologies to study preeclampsia—one of the most dangerous pregnancy complications, posing serious risks to the life and health of both mother and child. In a paper published in BioChip Journal, the researchers review modern cellular models—including advanced placenta-on-a-chip technologies—that offer deeper insights into the mechanisms of the disorder and support the development of effective treatments.
Using Two Cryptocurrencies Enhances Volatility Forecasting
Researchers from the HSE Faculty of Economic Sciences have found that Bitcoin price volatility can be effectively predicted using Ethereum, the second-most popular cryptocurrency. Incorporating Ethereum into a predictive model reduces the forecast error to 23%, outperforming neural networks and other complex algorithms. The article has been published in Applied Econometrics.
Administrative Staff Are Crucial to University Efficiency—But Only in Teaching-Oriented Institutions
An international team of researchers, including scholars from HSE University, has analysed how the number of non-academic staff affects a university’s performance. The study found that the outcome depends on the institution’s profile: in research universities, the share of administrative and support staff has no effect on efficiency, whereas in teaching-oriented universities, there is a positive correlation. The findings have been published in Applied Economics.