Corporate ESG performance and green innovation: empirical evidence from Chinese listed companies

Abstract

In the current context of China's goal of "carbon peaking and carbon neutrality," it is crucial to promote the development of a low-carbon economy through corporate green innovation. Understanding the relationship between corporate environmental, social, and governance (ESG) performance and green innovation has become a significant practical concern. This paper focuses on measuring the ESG performance of listed companies in the Shanghai and Shenzhen A-share markets from 2011 to 2021 using the China Securities ESG Rating Index. It empirically investigates the influence mechanism of ESG performance on green innovation. The research findings demonstrate that strong ESG performance by companies can significantly enhance the level of green innovation. This study explores the positive impact of ESG performance on green innovation, offering valuable insights for companies aiming to improve their ESG performance and promote the advancement of green innovation.