EXPLORATORY DATA ANALYSIS ON ENVIORNMENTAL AND FINANCIAL PERFORMANCE

● Conducted Exploratory Data Analysis (EDA) on a dataset combining environmental and financial metrics of over 60 companies.

● Developed code and analysis to explore the relationship between environmental sustainability and financial performance,leveraging a dataset with over 1,000 data points.

● Utilized Python along with libraries such as pandas, numpy, matplotlib, and seaborn for data preprocessing and visualization

● Created a detailed correlation matrix to identify significant relationships between variables such as total assets, dividends, ROA and ROE, analyzing over 50 different metrics.
● Generated insights on the interplay between sustainability and financial performance.

CORRELATION MATRIX

Total assets

Positively correlated with Direct emissions (0.33) and Indirect emissions (0.13) & Weakly negatively correlated with ROA (-0.11) and ROE (-0.02).

Explanation:
Companies with higher total assets tend to have higher direct and indirect emissions, and they may exhibit weaker returns on assets (ROA) and equity (ROE).

Dividend

Positively correlated with ROA (0.48) and ROE (0.49). &Negatively correlated with Direct emissions (-0.18) and Indirect emissions (-0.07).

Explanation:
Firms paying higher dividends often have better ROA and ROE but lower direct and indirect emissions.

ROA (Return on Assets)

Weakly negatively correlated with Total assets (-0.11) and Direct emissions (-0.29).& Strongly positively correlated with ROE (0.89).

Explanation:
Companies with higher ROA may have lower total assets and direct emissions and a strong positive relationship with ROE.

ROE (Return on Equity)

Weakly negatively correlated with Total assets (-0.02) and Direct emissions (-0.24).& Strongly positively correlated with ROA (0.89)

Explanation:
Higher ROE may correspond to lower total assets and direct emissions, with a strong positive correlation with ROA.

Direct emissions

Positively correlated with Total assets (0.33) and Indirect emissions (0.79).& Weakly negatively correlated with ROA (-0.29) and ROE (-0.24).

Explanation:
Companies with more significant direct emissions might have higher total assets and indirect emissions but potentially lower ROA and ROE.

Indirect emissions

Positively correlated with Total assets (0.13) and Direct emissions (0.79).& Weakly negatively correlated with ROA (-0.13) and ROE (-0.12).

Explanation:
Firms with substantial indirect emissions may also have higher total assets and direct emissions, potentially leading to lower ROA and ROE.