Assessing Environmental, Social, and Governance Risks in the Water, Energy, Land, and Food Nexus, Towards a Just Transition to Sustainable Energy in China

Abstract

The transition to sustainable energy in China is closely intertwined with environmental, social, and governance (ESG) risks within the water–energy–land–food (WELF) nexus. This study examines the complex interdependencies among these resources and evaluates the ESG challenges that may hinder or accelerate the energy transition. By integrating policy analysis and quantitative risk assessment, this research identifies key ESG risks, such as water scarcity, land-use conflicts, food security concerns, and social equity issues. The findings highlight the need for holistic governance frameworks and cross-sectoral strategies to mitigate ESG risks while ensuring a resilient and just energy transition. This study provides policy recommendations for aligning energy development with sustainable resource management, contributing to China’s long-term climate and economic goals.