Firm-level carbon risk perception and ESG performance.
Environ Sci Pollut Res Int
; 31(8): 12543-12560, 2024 Feb.
Article
en En
| MEDLINE
| ID: mdl-38233713
ABSTRACT
In a sustainable economy, each firm perceives different levels of carbon risk, but there are few studies on the relationship between a firm's carbon risk perception and Environmental, Social, and Governance (ESG) performance. This paper examines the impact of firm-level carbon risk perception on ESG performance using Chinese A-share listed firms during 2011-2020. We find a positive relationship between firm-level perception of carbon risk and firm ESG performance. Further analysis shows that analyst coverage and media attention exert a substantial moderating effect on the link between carbon risk perception and ESG performance. We identify three channels through which carbon risk perception affects ESG performance. First, rising carbon risk perception enables firms to take measures to reduce pollutants and greenhouse gas emissions and increases environmental (E) scores. Second, this perception encourages firms to take responsibility for social employment and increases social (S) scores. Finally, it improves firm sustainable governance and further increases governance (G) scores. Our research has an important guiding role in promoting firm ESG practice.
Palabras clave
Texto completo:
1
Banco de datos:
MEDLINE
Asunto principal:
Contaminantes Ambientales
Tipo de estudio:
Etiology_studies
/
Prognostic_studies
/
Risk_factors_studies
Idioma:
En
Revista:
Environ Sci Pollut Res Int
Asunto de la revista:
SAUDE AMBIENTAL
/
TOXICOLOGIA
Año:
2024
Tipo del documento:
Article
País de afiliación:
China