The Green Governance Revolution: How CSR Committee Shapes Corporate Environmental Innovation

Abstract

As global challenges linked to climate change intensify, the need for innovative and effective environmental strategies within corporate settings becomes ever more pressing. Despite growing scrutiny of corporate sustainability practices, the specific impact of dedicated CSR committees and their defining attributes on fostering environmental innovation remains insufficiently understood. This study addresses this gap by examining whether the existence of a CSR committee and its attributes (i.e., size, independence, chair independence, and meeting attendance) influence environmental innovation. Drawing on a global sample of non-financial firms listed in the Bloomberg World Large and Mid-Cap Index from 2013 to 2020, our analyses reveal that CSR committee presence accelerates environmental innovation. Furthermore, the size of the CSR committee, independence, and active participation in regular meetings demonstrate a positive and significant effect. By highlighting the critical contribution of well-designed and proactive CSR committees, our findings offer invaluable insights for boards of directors, managerial leaders, and policymakers, guiding the development of governance structures that effectively drive environmental innovation.