As global climate risks intensify, understanding how climate policies guide corporate environmental, social and governance (ESG) transitions and sustainable development has become a critical research question. This study aims to investigate the impact of climate policy intensity on corporate ESG performance.
Based on a data set of over 3 million media reports, this study innovatively constructs an ESG performance indicator for Chinese A-share listed companies from 2011 to 2023. From the perspective of institutional theory, it empirically examines the impact of climate policy intensity on corporate ESG performance.
This study finds that an increase in climate policy intensity can significantly improve corporate ESG performance, particularly in the environmental and social dimensions. Mechanism tests reveal that the enhancement of climate policy intensity improves corporate ESG performance by promoting ESG financial cooperation and enhancing corporate environmental awareness. Heterogeneity analysis shows that the effect of climate policy intensity on improving corporate ESG performance is more pronounced in companies with lower supply chain concentration, in downstream industries, in pollution-intensive sectors and in cities with stronger ESG governance.
This study uncovers the specific effects and internal mechanisms through which changes in climate policy intensity impact corporate ESG performance, providing valuable insights for governments to formulate reasonable climate policies and emphasize sustainable development in differentiated policy scenarios.
