Environmental, Social, and Governance (ESG) Committees and Corporate ESG Information Disclosure: From the Perspective of Organizational Information Processing

Abstract

Based on the organizational information pro- cessing theory, this paper examines the impact and mech- anisms of ESG committees on the level of corporate ESG information disclosure using a sample of Chinese A+H share listed companies from 2016 to 2022. The study finds that establishing an ESG committee significantly improves the level of corporate ESG information disclosure. ESG committees enhance corporate information processing capabilities through three aspects: improving ESG governance structure, increasing board and management attention to ESG informa- tion, and attracting external stakeholders' attention. These improvements contribute to higher levels of ESG information disclosure. Moderation tests show that in companies with higher internationalization, intense industry competition, and high economic policy uncertainty, the increased information processing task encourages more proactive ESG committee activities, thereby significantly improving ESG information disclosure levels.