{"title":"Climate Policy Uncertainty and Corporate Sustainability Capability: Evidence From ESG Performance","authors":"Ximeng Liu, Youtao Xiang","doi":"10.1002/csr.3244","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>With the serious ecological damage and frequent climate risks, stakeholders are increasingly concerned about corporate sustainability capability. Government agencies are also actively formulating climate policies to guide corporates to carry out ESG behaviors and promote economic and social sustainability. However, frequent climate policies may bring significant policy uncertainty, inhibiting firms' capability to improve sustainability. Based on the sample data of 742 listed firms in China from 2011 to 2022, we examine the impact of climate policy uncertainty (CPU) on corporate sustainability capability. The study finds that CPU significantly inhibits corporate sustainability capability, and this conclusion remains valid after a series of robustness tests. The mechanism tests show that CPU significantly inhibits corporate sustainability capability by reducing climate perception capability, triggering investor pessimism, and increasing bank risk. Further research found that government digital transformation can directly reduce CPU, thereby reducing the negative impact on corporate sustainability capability. The moderation analysis reveals that corporate digital transformation can significantly positively moderate the impact of CPU on corporate sustainability capability. The findings from the heterogeneity test indicate that corporates with high policy and risk sensitivity are more significantly affected by CPU in terms of their sustainability capability. Overall, this paper adds to the micro-level analytical framework and empirical evidence of climate policy shocks. Policymakers should pay attention to the issue of climate policy uncertainty and mitigate its negative shock on the sustainable development capacity of enterprises by creating more stable climate policy expectations.</p>\n </div>","PeriodicalId":48334,"journal":{"name":"Corporate Social Responsibility and Environmental Management","volume":"32 4","pages":"5302-5322"},"PeriodicalIF":8.3000,"publicationDate":"2025-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Corporate Social Responsibility and Environmental Management","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/csr.3244","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
With the serious ecological damage and frequent climate risks, stakeholders are increasingly concerned about corporate sustainability capability. Government agencies are also actively formulating climate policies to guide corporates to carry out ESG behaviors and promote economic and social sustainability. However, frequent climate policies may bring significant policy uncertainty, inhibiting firms' capability to improve sustainability. Based on the sample data of 742 listed firms in China from 2011 to 2022, we examine the impact of climate policy uncertainty (CPU) on corporate sustainability capability. The study finds that CPU significantly inhibits corporate sustainability capability, and this conclusion remains valid after a series of robustness tests. The mechanism tests show that CPU significantly inhibits corporate sustainability capability by reducing climate perception capability, triggering investor pessimism, and increasing bank risk. Further research found that government digital transformation can directly reduce CPU, thereby reducing the negative impact on corporate sustainability capability. The moderation analysis reveals that corporate digital transformation can significantly positively moderate the impact of CPU on corporate sustainability capability. The findings from the heterogeneity test indicate that corporates with high policy and risk sensitivity are more significantly affected by CPU in terms of their sustainability capability. Overall, this paper adds to the micro-level analytical framework and empirical evidence of climate policy shocks. Policymakers should pay attention to the issue of climate policy uncertainty and mitigate its negative shock on the sustainable development capacity of enterprises by creating more stable climate policy expectations.
期刊介绍:
Corporate Social Responsibility and Environmental Management is a journal that publishes both theoretical and practical contributions related to the social and environmental responsibilities of businesses in the context of sustainable development. It covers a wide range of topics, including tools and practices associated with these responsibilities, case studies, and cross-country surveys of best practices. The journal aims to help organizations improve their performance and accountability in these areas.
The main focus of the journal is on research and practical advice for the development and assessment of social responsibility and environmental tools. It also features practical case studies and evaluates the strengths and weaknesses of different approaches to sustainability. The journal encourages the discussion and debate of sustainability issues and closely monitors the demands of various stakeholder groups. Corporate Social Responsibility and Environmental Management is a refereed journal, meaning that all contributions undergo a rigorous review process. It seeks high-quality contributions that appeal to a diverse audience from various disciplines.