 Beyond awareness: How investor-initiated communications reduce corporate carbon emissionsZijun Luo, Mingyang Li, Xueqin Hu and Hao Xu Economic Modelling, 2025, vol. 152, issue C Abstract: Existing studies have paid much attention to the determinants and consequences of climate risk, yet they lack evidence on actual and certain measures of environmental performance at the firm level. Employing firm-level carbon emissions data from Trucost, this paper finds that investor-initiated communications effectively reduce corporate carbon emissions by emphasizing environmental protection concepts, promoting digital transformation, and fostering green innovation. Different characteristics of investor inquiries, including communication sentiment and environmental-related word frequency, are positively related to carbon emissions reduction. The impact of investor-initiated communications is stronger for firms in heavily polluting industries or cities, and those with stronger corporate governance, better financial conditions, or heightened investor attention. The findings underscore the importance of fostering constructive investor–firm communications to incentivize green practices and accelerate the transition towards a low-carbon economy in China and beyond. Keywords: Climate change; Carbon emissions; Investor-initiated communications (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:152:y:2025:i:c:s0264999325002597 DOI: 10.1016/j.econmod.2025.107264 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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