Explain one reason why environmental data may offer a good indication of the future performance of an oil company such as BP.

Answer 1

Naturally, the linkage between environmental decay as a side product of a company's production operations can have a deleterious effect on its long-term viability in the marketplace. Consumers and shareholders alike shun firms that are not environmentally conscious. This is especially true for corporations that extract oil from the earth, such as BP, where the very nature of their operations can have a tangible and measurable adverse impact on the environment.