Search Results (64)

Promoting social equity is a global issue, and common prosperity is an important goal for human society’s sustainable development. This study is the first to examine climate risks’ impacts on common prosperity from the perspective of corporate employees, providing micro-level evidence for the coordinated development of climate governance and social equity. Employing data from companies listed on the Shanghai and Shenzhen stock exchanges from 2016 to 2023, a fixed-effects model analysis was conducted, and the results showed the following: (1) Climate risks are positively associated with the common prosperity of corporate employees in a significant way, and this effect is mainly achieved through employee guarantees, rather than employee remuneration or employment. (2) Climate risk will increase corporate financing constraints, but it will also force companies to improve their ESG performance. (3) The mechanism tests show that climate risks indirectly promote improvements in employee rights and interests by forcing companies to improve the quality of internal controls and audits. (4) The results of the moderating effect analysis show that corporate size and performance have a positive moderating effect on the relationship between climate risk and the common prosperity of corporate employees. This finding may indicate the transmission path of “climate pressure—governance upgrade—social equity” and suggest that climate governance may be transformed into social value through institutional changes in enterprises. This study breaks through the limitations of traditional research on the financial perspective of the economic consequences of climate risks, incorporates employee welfare into the climate governance assessment framework for the first time, expands the micro research dimension of common prosperity, provides a new paradigm for cross-research on ESG and social equity, and offers recommendations and references for different stakeholders. Full article

Emerging economies such as China have benefited from rapid growth but now face acute carbon risk amid worsening environmental conditions. Carbon-intensive firms—major emitters—face rising carbon risk that pervades operations and threatens efficient capital allocation. To advance global climate-change mitigation, help China meet its dual-carbon goals, and enhance corporate financial sustainability, we analyze panel data on 575 Chinese carbon-intensive companies from 2012 to 2022 and estimate OLS models to assess how carbon risk influences capital mismatch. Results show that higher carbon risk significantly widens capital mismatch, whereas higher media attention and better corporate governance each weaken this effect. These findings suggest that regulators and the media should monitor carbon-intensive firms more closely to improve information transparency and guide capital to its most productive uses, while firms themselves need to strengthen governance to limit the damage carbon risk inflicts on capital allocation. Full article

The positive impact of data elements on enterprise operation has been confirmed by many scholars, but few studies have paid attention to the effect of data elements on corporate green transformation, especially in the context of global climate change. In this study, we employ panel data from Chinese listing firms to identify the casual impact of data elements on corporate green transformation, using the staggered difference-in-differences method. We show that: (a) Data elements exert a significant positive influence on corporate green transformation. This finding holds up in a series of robustness checks; (b) The promoting effect of data elements on green transformation is mediated by alleviating financing constraints and elevating executive green attention; (c) Green governance resilience and green management innovation can strengthen the positive relationship between data elements and green transformation; and (d) The promoting effect is more pronounced in enterprises with larger boards of directors, those located in the eastern regions, and those characterized by higher carbon emission intensities. Overall, we not only provide empirical evidence of optimizing regional data-factor allocation and promoting green technological innovation but also offer theoretical guidance for refining the pathways of corporate green transformation. Full article

After decades of calls for more sustainable land use systems, there is still a lack of consensus on an appropriate way forward, especially for tropical and subtropical agroecosystems. Land Maxing utilises appropriate, community-based interventions to fortify and maximise the multiple, long-term benefits and interest flows from investments that rebuild all six essential capitals of sustainable development (natural, social, human, physical, financial and political/corporate will) for resource-poor smallholder communities in tropical and subtropical countries. Land Maxing adds domestication of overlooked indigenous food tree species, and the commercialization of their marketable products, to existing land restoration efforts while empowering local communities, enhancing food sovereignty, and boosting the local economy and overall production. These agroecological and socio-economic interventions sustainably restore and intensify subsistence agriculture replacing conventional negative trade-offs with fortifying ‘trade-ons’. Land Maxing is therefore productive, regenerative, remunerative and transformative for farming communities in the tropics and sub-tropics. Through the development of resilience at all levels, Land Maxing uniquely addresses the big global issues of environmental degradation, hunger, malnutrition, poverty and social injustice, while mitigating climate change and restoring wildlife habitats. This buffers subsistence farming from population growth and poor international governance. The Tropical Agricultural Association International is currently planning a programme to up-scale and out-scale Land Maxing in Africa. Full article

Climate policy uncertainty (CPU) poses formidable challenges to global sustainable development and corporate strategic planning, while intelligent transformation is emerging as a pivotal enabler of organizational sustainability. Using panel data from Chinese A-share listed companies between 2011 and 2022, this study investigates the impact of climate policy uncertainty on intelligent transformation. The results indicate that CPU significantly promotes corporate intelligent transformation, a conclusion that remains robust under various sensitivity tests. Government innovation subsidies, enterprise absorption capacity, and enterprise human capital positively moderate this facilitating effect. A heterogeneity analysis reveals that the effect of CPU on intelligent transformation is more pronounced among firms in sci–tech finance pilot zones, regions with high digital financial inclusion, and those led by CEOs with banking experience. This paper contributes to the literature on climate policy uncertainty by examining its role in corporate intelligent transformation, offering actionable strategies for firms to mitigate climate risks while providing policy insights for developing economies to leverage smart technologies in addressing CPU. Full article

This paper introduces the Integrated Model for Sustainable Development (IMSD), a theory-driven governance framework that embeds Corporate Diversity Responsibility (CDR) into climate and energy policy to advance systemic equity, institutional resilience, and inclusive innovation. Grounded in Institutional Theory, the Resource-Based View (RBV), and Intersectionality Theory, IMSD unifies fragmented sustainability efforts across five pillars: Climate Sustainability, Social Sustainability (CDR), Governance Integration, Collaborative Partnerships, and Implementation and Monitoring. Aligned with SDGs 7, 10, and 13, IMSD operationalizes inclusive leadership, anticipatory adaptation, and equity-centered decision-making. It addresses the compounded climate vulnerabilities faced by women and marginalized groups in the Global South, integrating insights from Indigenous resilience and intersectional adaptation strategies. Unlike conventional CSR or ESG models, IMSD institutionalizes diversity as a strategic asset and governance principle. It transforms DEIB from symbolic compliance into a catalyst for ethical leadership, legitimacy, and performance in turbulent environments. The model’s modular structure supports cross-sector scalability, making it a practical tool for organizations seeking to align ESG mandates with climate justice and inclusive innovation. Future empirical validation of the IMSD framework across diverse governance settings will further strengthen its applicability and global relevance. IMSD represents a paradigm shift in sustainability governance—bridging climate action and social equity through theory-based leadership and systemic institutional transformation. Full article

One of the core objectives of the European Green Deal in pursuing climate neutrality and sustainable development is the decarbonization of high-impact sectors. Among the most polluting is the fast fashion industry, driven by linear business models that must urgently transition to circular economy frameworks and decarbonized supply chains. Fast fashion poses significant environmental and social challenges due to its high greenhouse gas emissions, excessive resource consumption, and substantial waste generation. To foster greater sustainability within the sector, this study examines environmental indicators defined by the European Sustainability Reporting Standards (ESRS), in accordance with the EU’s Corporate Sustainability Reporting Directive (CSRD) 2022/2464. Aligned with the Global Reporting Initiative (GRI), these standards aim to harmonize sustainability disclosures and enable better decision-making across environmental, social, and governance (ESG) dimensions throughout Europe. This research focuses on five key environmental aspects—climate change, pollution, water resource management, biodiversity, and circular economy/resource use—across four leading fast fashion brands: Mango, Zara, H&M, and Shein. Using an exploratory web-based methodology, this study evaluates how these companies disclose and implement ESG strategies in their supply chains. The central aim is to assess the sustainability and resilience of their operations, with particular emphasis on communication strategies that support the transition from linear to circular business models. Ultimately, this study seeks to highlight both the progress and persistent challenges faced by the fast fashion industry in aligning with ESG and ESRS requirements. Full article

In contemporary times, energy sustainability and security have become essential economic concerns globally. Nonetheless, in addition to these concerns, inadequate governance inside a corporation within the energy industry may result in corruption and energy instability within the sector. The primary purpose of this study was to examine the influence of a new array of corporate governance controversies on the energy security of 102 listed energy businesses in Europe. To achieve the purpose of this study, entropy weight and TOPSIS multicriteria approaches were used. The data were obtained from the Refinitiv Eikon database for fiscal year 2024. The findings reveal that the most significant influence, among the identified governance concerns that affect the energy security of European energy corporations, is the detrimental effect of the directors’ people. Moreover, the criteria that constitute bribery, corruption, and fraud scandals seem to be the second most significant element affecting the energy security of the enterprises in this industry. The risk of corruption in governance is exacerbated in the realm of renewable energy due to several converging factors: the urgent demands to implement new projects in response to the climate crisis, apprehensions regarding energy security, potential access to lucrative contracts, and the existence of ‘rent-seeking’ gatekeepers within the processes central to the development and operation of renewable energy assets. Full article

Corporate climate transition is one of the greatest challenges and opportunities of the 21st century, shaping the future of business sustainability and aligning economic growth with global environmental goals. This article aims to identify the main barriers, opportunities, and best practices associated with the implementation of corporate climate transition plans. Based on a review of studies from leading databases—Scopus, Web of Science, ScienceDirect, and Google Scholar—the research categorizes barriers into economic, financial, political, regulatory, cultural, organizational, and technological dimensions. Opportunities are grouped into areas like sustainable finance, technological innovation, and resilience building. Best practices are organized into clusters, notably governance, energy efficiency, social equity, and just transition frameworks. In addition to advancing academic understanding, this study offers practical implications for key stakeholders. Financial institutions can use these findings to develop climate-aligned financial products tailored to corporate realities. Policymakers can improve regulatory frameworks to foster sustainable business practices and remove legislative barriers. Companies are empowered to refine their climate strategies, address operational constraints, and explore new sustainability-driven opportunities. By integrating scientific insights with real-world applicability, this review contributes to a more holistic understanding of corporate climate transition, bridging academic research with actionable pathways for businesses, financial actors, and public decision-makers. Full article

The low-carbon development (LCD) of energy markets not only serves as a critical enabler in combating global climate change and advancing the green economy but also enhances global industrial competitiveness. Grounded in prospect theory, this study develops a tripartite evolutionary game model involving three core energy market stakeholders, i.e., energy enterprises, the public, and the government, to investigate the determinant factors and decision-making mechanisms underlying the LCD of energy enterprises, with subsequent simulation analyses conducted through MATLAB R2024a. The research findings indicate that loss aversion serves as the primary driver for energy enterprises’ adoption of LCD strategies. Public supervision demonstrates optimal effectiveness only under conditions of low risk and low loss, while risk sensitivity remains the dominant factor influencing the government’s strategic choices. Notably, government incentives combined with public supervision demonstrate significant synergistic effects in accelerating the corporate transition toward LCD. Accordingly, the government should actively promote LCD strategies to mitigate transformation risks for energy enterprises while concurrently optimizing regulatory frameworks to reduce public supervision costs and amplify incentive benefits, thereby fostering active public participation in LCD. Full article

This conceptual paper introduces Macro Stewardship (Ma-S) as a transformative approach in sustainable finance to challenge financial market failures that contribute to systemic collective action issues such as climate change, biodiversity loss, and inequality. It argues that traditional Environmental, Social, and Governance (ESG) strategies focus on individual corporate actions and often fail to drive systemic change. Ma-S, on the other hand, leverages the power of financial institutions to engage governments, policymakers, and stakeholders in addressing market failures tied to sustainability. Unlike Micro Stewardship (Mi-S) or ESG approach, which centers on corporate-level engagement, Ma-S promotes collaborative interventions to align the interests of businesses, governments, and society. This approach aims to influence regulatory changes, shape public policy, and support the United Nations Sustainable Development Goals (SDGs). The paper is guided by the research question: How can Macro Stewardship by financial institutions serve as a transformative approach in sustainable finance to achieve systemic change? It proposes a definition for Ma-S, outlines its practical applications, identifies implementation challenges, and presents a research agenda to evaluate its effectiveness and impact. In doing so, the paper lays a foundation for future empirical studies and calls for a shift in how financial systems contribute to global sustainability. Full article

Efforts to address anthropogenic climate change have been focused sensibly on mitigation and adaptation. However, given the difficulties in the implementation of a rapid global mitigation process, increasing attention is being given to geoengineering as a way to countervail some of the climate change impacts. This development has increased the private investment in geoengineering research in the last few years, leading to patent filing. The article examines the recent evolution of patents in the emerging field of geoengineering technologies. Despite the secrecy surrounding the field of geoengineering, especially solar radiation management at the state level, patent databases provide transparency, offering technical details, market insights, and information about the key players. Patents, published 18 months after filing, reveal valuable data about geoengineering technologies, the targeted markets, and involved stakeholders. The databases of the International Patent Classification (IPC) and Cooperative Patent Classification (CPC) are used. The focus of the present analysis is on patents in the sub-domains of carbon dioxide removal and solar radiation management and on those held by the large oil producer corporations. The results highlight the patents filed in the controversial area of SRM. The growing economic significance of geoengineering requires the protection of innovations through patents coupled with the implementation of a global governance system based on climate justice and ethical responsibility. Full article

In the context of increasingly severe global climate change, both companies and investors are placing greater emphasis on investment philosophies centered around environmental protection, social responsibility, and corporate governance (ESG). This paper, based on data from 847 Chinese A-share listed companies over the period 2007–2022, employs a two-way fixed effects model to investigate the relationship between ESG controversies and firm investment efficiency. The results indicate that ESG controversies significantly reduce overall firm investment efficiency. Further analysis reveals that ESG controversies affect investment efficiency by exacerbating agency costs and reducing audit quality. Meanwhile, financing constraints and robust internal control quality mitigate these negative effects. Heterogeneity analysis shows that the impact is more pronounced for firms with higher pollution levels, non-state-owned enterprises, those with higher analyst coverage, and firms with lower levels of digitalization. The findings have significant implications for encouraging companies to fulfill their social responsibilities and promote high-quality economic development. Full article

As the issue of global climate change becomes increasingly severe, governments worldwide have implemented carbon reduction policies, such as carbon taxes and industrial low-carbon transitions, to effectively control total carbon emissions. This study applies a multi-objective programming approach and uses the plastic raw material manufacturing process in the petrochemical industry as an example to explore how companies can balance profit maximization with minimizing production-related carbon emissions. By integrating Activity-Based Costing (ABC) and the Theory of Constraints (TOC), this study develops a production decision-making model and employs the ε-constraint method to impose carbon emission constraints, analyzing the resulting changes in corporate profitability. The model considers three different policy scenarios: basic carbon tax costs (including the use of renewable energy), continuous incremental progressive carbon tax costs, and discontinuous incremental progressive carbon tax costs. The results indicate that adopting renewable energy effectively reduces carbon emissions during production, while the discontinuous incremental carbon tax model provides better control over emissions. Under different carbon emission constraints, significant variations in optimal profits and production volumes are observed across the models, offering valuable insights for governments and enterprises in formulating carbon reduction strategies. Full article

Against the backdrop of addressing global climate change, whether the new generation of information technology, centered on artificial intelligence (AI), can promote comprehensive green transformation and achieve the “dual carbon” goal has become an important issue in China’s national development strategy. The research objective of this paper is to explore the causal relationship between AI and green innovation (GI). In this study, we conduct a quasi-natural experiment using the National New Generation Artificial Intelligence Innovation and Development Pilot Zone (NAIPZ). On the basis of data from A-share-listed companies from 2013 to 2022, we use a staggered difference-in-difference model to study the impact and mechanism of AI on corporate GI. Research results show that AI can improve the GI of enterprises. Mechanism analysis results show that AI promotes GI in enterprises by improving internal governance and optimizing human capital, while industry competition can increase the promotion effect of AI on GI. Heterogeneity analysis results indicate that the promotion effect of AI on GI is particularly prominent in the eastern region, high-tech industries, and non-state-owned enterprises. This study addresses the important question of whether the NAIPZ can promote GI in enterprises, thereby providing empirical evidence and policy references for accelerating the integration and development of AI and GI in China. Full article