ESG ratings and green innovation: A U‐shaped journey towards sustainable development
Tianjin Foreign Studies University · University of Portsmouth
Abstract
Abstract This study examines the relationship between corporate ESG ratings and green innovation based on data from Chinese A‐share listed companies for the period between 2011 and 2022. The findings suggest a “U”‐ shaped relationship between ESG ratings and green innovation. Companies with lower ESG ratings (referred to as “bad” companies) tend to focus on improving their corporate governance and operational conditions, often at the expense of green innovation. However, as companies improve their ESG ratings, they increasingly view green innovation as a key growth area. This relationship is particularly evident in companies with low profitability and high operational risks. Additionally, we explore the impact…
Citation impact
- FWCI
- 88.18
- Percentile
- 100%
- References
- 59
Authors
3Topics & keywords
- Business
- Profitability index
- Government (linguistics)
- Corporate governance
- Green innovation
- Sustainability
- Subsidy
- Sustainable development
- Industry, innovation and infrastructure