Impacts of ESG Disclosure on Corporate Carbon Performance: Empirical Evidence from Listed Companies in Heavy Pollution Industries

Fengxue Yin, Yanling Xiao (), Rui Cao and Jianhua Zhang
Additional contact information
Fengxue Yin: School of Economics and Management, Northeast Petroleum University, Daqing 163318, China
Yanling Xiao: School of Economics and Management, Northeast Petroleum University, Daqing 163318, China
Rui Cao: School of Economics and Management, Northeast Petroleum University, Daqing 163318, China
Jianhua Zhang: School of Economics and Management, Northeast Petroleum University, Daqing 163318, China

Sustainability, 2023, vol. 15, issue 21, 1-19

Abstract: With the increasing severity of global climate change, environmental issues have become a key factor constraining sustainable economic development. Environmental, social, and corporate governance (ESG) is in line with the concept of enterprises’ sustainable development, and it is significant to study the mechanism of ESG disclosure on corporate carbon performance for the low-carbon transformation of enterprises. Based on the panel data of Chinese heavily polluting companies, a two-way fixed-effects model is used to analyze the relationship theoretically and validate the empirical data. It is found that ESG disclosure significantly contributes to corporate carbon performance, and corporate carbon performance will increase by 1.2% for each level of ESG disclosure. A series of robustness tools, such as endogeneity tests, replacement of critical variables, and control variable treatment, further verify that the main findings are robust and reliable. Heterogeneity analysis shows that the growth and ownership attributes of heavily polluting firms can lead to a heterogeneous characterization of the impact of ESG disclosure on firms’ carbon performance. In addition, the institutional environment and media attention moderate the relationship between ESG disclosure and corporate carbon performance. The results of this study provide empirical support for promoting carbon performance in China’s heavy-polluting industries and achieving the “double carbon” goal.

Keywords: ESG; corporate carbon performance; heavily polluting industries; institutional environment; media attention (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/21/15296/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/21/15296/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:21:p:15296-:d:1267511

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().