Analysis reveals ESG performance significantly reduces carbon emissions in firms, indicating mechanisms involving innovation and investor attention.
Key Points
Improvements in esg performance result in significant reductions in carbon emissions, enhancing firms' environmental impact.
Analysis from 2019 to 2023 shows this influence operates through promoting green technological innovation and increased analyst scrutiny.
The effect of esg on emission reduction is stronger in firms with lower institutional ownership, indicating varying impacts based on ownership structures.
Findings suggest differentiated regulatory strategies are needed to address the variable influence of ownership on firms' commitment to esg goals.