How does green credit policy improve corporate social responsibility in China? An analysis based on carbon‐intensive listed firms

Green credit policy is designed to address the global climate risk. However, few studies have investigated empirically whether green credit policy indeed reduces corporate carbon emission intensity. Based on firm‐level data in China and a difference‐in‐differences model, this study explores how corporate carbon emission intensity evolves following the green credit policy. We find that, on the whole, the green credit can effectively reduce corporate carbon emission intensity, while the dynamic negative effect tends to alleviate after 2017. Specifically, green credit reduces corporate carbon emission intensity mainly through lowering investment carbon intensity and enhancing environmental supervision. However, the signaling mechanism of green credit does not significantly alleviate corporate carbon emission intensity. The green credit has a stronger reduction effect on corporate carbon emission intensity with third‐party certification, non‐state‐owned ownership, and high financing constraint. We thereby suggest that innovations should be made to the standards and processes of green credit to ensure sustainability and stability. Quantitative and standardized corporate environmental information disclosure is essential for the low‐carbon effect on green finance innovation.

CEI = CO 2 {italicemissions}_{italicit} / {italicincome}_{italicit},

CO 2 {italicemissions}_{italicit} = \frac{{cost}_{it}}{\sum_{i} {italiccost}_{italicijt}} \times (\sum_{k} {italicenergy}_{italicjkt} \times {italiccoefficient}_{k}),

where, CEI is the carbon emission intensity of firm

i

in year

t

{italiccost}_{italicit}

and

{italicincome}_{italicit}

are respectively the main business cost and main business income of firm

i

in year

t

, both obtained from the CSMAR database.…”

Section: Methodsmentioning

confidence: 99%

“…Specifically, the did variable denotes the interaction of treated group dummy (

{italictreat}_{i}

) and policy shock year dummy (

{italicpost}_{t}

), that is,

{italictreat}_{i} \times {italicpost}_{t}

Section: Methodsmentioning

confidence: 99%

Section: Explained Variablementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Can green credit policy reduce corporate carbon emission intensity: Evidence from China's listed firms

Jahanger

et al. 2023

The influential capacity of carbon neutrality environmental orientation in modulating stakeholder engagement toward green manufacturing

Guo

Dong

Tsinopoulos

et al. 2023

In response to the urgency for carbon neutrality and the dwindling of natural resources, a global pivot toward green manufacturing (GM) is underway. This study scrutinizes the operationalization of GM, assessing the impact of stakeholder engagement (SE) on the adoption of such practices, with a carbon neutrality environmental orientation (EO) as a moderating factor. Initial steps of this investigation incorporated a comprehensive analysis of extant literature, elucidating the tripartite constructs of green manufacturing (GM), SE, and carbon neutrality EO. Guided by the tenets of the NRBV and stakeholder theory, a conceptual framework was constructed to theoretically interlink these constructs. Subsequently, a Q‐sort pilot study was employed to preliminarily test and ascertain the validity and reliability of the proposed measurement tools before their incorporation into a broader survey. Data from 374 completed questionnaires, by managerial personnel, were analyzed using structural equation modeling to confirm the hypotheses. Empirical results substantiate that SE positively influences GM. Additionally, a carbon neutrality orientation moderates the SE–GM relationship. These findings possess significant implications for policymakers and firms within the apparel industry. By revealing the prevailing strengths and potential shortcomings in the current implementation of GM, this study underscores the imperative of robust SE and a committed EO toward carbon neutrality. Such a commitment can facilitate a more systematic and efficient enhancement of the GM process, from its nascent stages through to its complete realization.

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Lei,

2023

Environmental, social, and governance (ESG) practices play an increasingly important role in achieving sustainable development goals. Drawing on institutional theory, this paper empirically explores whether and how green financial policy affects corporate ESG performance. Taking China's pilot policy for green finance reform and innovation (GFP) as a quasi‐natural experiment, we employ the difference‐in‐differences model to investigate the causal relationship between green financial policy and corporate ESG performance. We find that the GFP significantly improves corporate ESG performance. The results are robust to a series of checks such as parallel trend examination, placebo test, mitigation of omitted variable bias, alternative variables, and the exclusion of contemporaneous policies. The heterogeneity analysis shows that the positive impact of GFP on corporate ESG performance is more pronounced for firms with tighter financial constraints, higher agency costs, and more external pressures. On this basis, we further document that the positive impact of GFP on corporate ESG performance is more pronounced for investee firms with more institutional ownership. The above findings indicate that the formal institution of government‐led green financial policy can positively affect corporate ESG performance, and market participants‐institutional investors help to strengthen this policy effect. Overall, our study sheds light on the significant role of green financial policy in promoting corporate sustainability.