Eco-innovation and corporate waste management: The moderating role of ESG performance

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Abstract

Based on a sample of companies from G7 countries, we investigate the effect of eco-innovation on waste management as well as the moderating role of firms’ environmental, social, and governance (ESG) on this relationship. Our findings indicate that a higher level of eco-innovation might lead to a decline in firms’ total waste produced and an increase in firms’ magnitude of reusing and recycling waste. Likewise, our findings are associative with a moderating effect of ESG on the eco-innovation-waste management nexus. We argue that eco-innovation, along with better ESG performance, leads to a reduction in waste produced and thus better business waste management. Our study has several implications on micro- and macroeconomic levels. Countries should revisit their national strategies and domestic policies about circular economies to form international alliances and embrace more technological development.

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APA

Albitar, K., Nasrallah, N., Hussainey, K., & Wang, Y. (2024). Eco-innovation and corporate waste management: The moderating role of ESG performance. Review of Quantitative Finance and Accounting, 63(2), 781–805. https://doi.org/10.1007/s11156-024-01281-5

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