Climate risk and corporate environmental performance: Empirical evidence from China
Climate risk and corporate environmental performance: Empirical evidence from China
This study creatively investigates the impact of extreme national climate risk on corporate environmental performance in the context of China. An innovative approach based on an assessment of the economic input-output life cycle is utilized to evaluate carbon footprint at the corporate level. We select the Chinese climate risk score calculated by Germanwatch to represent climate risk, and then test its effects on corporate carbon performance using the dynamic threshold model. The results indicate that an increase in national climate risk will promote corporate carbon emissions, which are more pronounced when the climate risk score is in the high-risk range. Furthermore, the effects of climate risk on corporate carbon performance differ across companies with different geographical locations and environmental restrictions. In addition, ownership and whether a company is listed on stock exchanges do not significantly affect the impact of climate risk on corporate carbon performance in China. Our findings reflect the subtle connections between Chinese companies and climate risk on the whole, and could help relevant business leaders, policymakers, and investors enhance related policies.
Climate risk, Corporate carbon performance, Dynamic threshold model, Environment sensitivity
467-477
Ren, Xiaohang
970abdf4-ff20-4244-9952-f9ee910736ee
Li, Yiying
fd7136d1-e6c3-4cb9-af0b-4114a321d497
Shahbaz, Muhammad
c38dcb9a-28af-47de-ae29-9b98551a6fe6
Dong, Kangyin
e17c6934-2e95-4a19-be1b-be697ca4e165
Lu, Zudi
4aa7d988-ac2b-4150-a586-ca92b8adda95
1 March 2022
Ren, Xiaohang
970abdf4-ff20-4244-9952-f9ee910736ee
Li, Yiying
fd7136d1-e6c3-4cb9-af0b-4114a321d497
Shahbaz, Muhammad
c38dcb9a-28af-47de-ae29-9b98551a6fe6
Dong, Kangyin
e17c6934-2e95-4a19-be1b-be697ca4e165
Lu, Zudi
4aa7d988-ac2b-4150-a586-ca92b8adda95
Ren, Xiaohang, Li, Yiying, Shahbaz, Muhammad, Dong, Kangyin and Lu, Zudi
(2022)
Climate risk and corporate environmental performance: Empirical evidence from China.
Sustainable Production and Consumption, 30, .
(doi:10.1016/j.spc.2021.12.023).
Abstract
This study creatively investigates the impact of extreme national climate risk on corporate environmental performance in the context of China. An innovative approach based on an assessment of the economic input-output life cycle is utilized to evaluate carbon footprint at the corporate level. We select the Chinese climate risk score calculated by Germanwatch to represent climate risk, and then test its effects on corporate carbon performance using the dynamic threshold model. The results indicate that an increase in national climate risk will promote corporate carbon emissions, which are more pronounced when the climate risk score is in the high-risk range. Furthermore, the effects of climate risk on corporate carbon performance differ across companies with different geographical locations and environmental restrictions. In addition, ownership and whether a company is listed on stock exchanges do not significantly affect the impact of climate risk on corporate carbon performance in China. Our findings reflect the subtle connections between Chinese companies and climate risk on the whole, and could help relevant business leaders, policymakers, and investors enhance related policies.
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More information
Accepted/In Press date: 22 December 2021
e-pub ahead of print date: 24 December 2021
Published date: 1 March 2022
Additional Information:
Funding Information:
The article is supported by the Beijing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Center & Beijing Social Science Foundation (Grant No. 21LLLJC028), the Key Program of the National Natural Science Foundation of China (Grant No. 72131011), and the Fundamental Research Funds for the Central Universities, Zhongnan University of Economics and Law (Grant No.2722019JCG023). The authors gratefully acknowledge the helpful reviews and comments from the editors and anonymous reviewers, which improved this manuscript considerably. Certainly, all remaining errors are our own.
Publisher Copyright:
© 2021 Institution of Chemical Engineers
Keywords:
Climate risk, Corporate carbon performance, Dynamic threshold model, Environment sensitivity
Identifiers
Local EPrints ID: 454257
URI: http://eprints.soton.ac.uk/id/eprint/454257
ISSN: 2352-5509
PURE UUID: 879f8fe7-964d-4039-93de-072da061ac1a
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Date deposited: 03 Feb 2022 17:54
Last modified: 17 Mar 2024 07:04
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Author:
Xiaohang Ren
Author:
Yiying Li
Author:
Muhammad Shahbaz
Author:
Kangyin Dong
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