How does green finance policy affect the environmental performance of manufacturing companies?

The manufacturing industry is a key area for the low-carbon transformation of the economy, and guiding financial capital to increase support for the green development of manufacturing companies is the focus of current green finance reform. Based on the "ECON-ESG" framework, which integrates economic considerations with environmental, social, and governance factors, we hypothesize that the GFRP policy can significantly enhance the environmental performance of manufacturing companies through mechanisms of management and capital. Based on a panel dataset of A-share listed manufacturing companies from 2010 to 2022, this study employs the multi-period difference-in-differences (Staggered DID) approach to examine the impact of the GFRP policy on the environmental performance of manufacturing companies. The analysis reveals three key findings. First, the GFRP policy led to a 16.22 % improvement in the environmental performance of manufacturing companies during the sample period. Second, the policy primarily enhances environmental attention among executives and alleviates financing constraints, thereby improving environmental performance. Third, the policy has a relatively strong positive impact on non-high-tech companies, companies subject to relatively weak external regulation, and companies located in in regions with high levels of fintech. These findings provide empirical evidence that GFRP policy can effectively drive environmental improvements while supporting economic transformation, offering insights for policymakers aiming to align finance with ecological goals.