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Published on: June 15, 2014
A new quest for green finance and ESG excellence: A new perspective on energy efficiency
Linjun Cao1, Nan Zhou2, Mo Chen3
1China Academy of Corporate Governance, Nankai University, Tianjin, 300071, China; School of Business, Nankai University, Tianjin, 300071, China.
Abstract:
This study unleashes the impact of green finance (GF) on corporate ESG performance and the mechanism of energy efficiency (EE) using the data from China's listed companies from 2010 to 2022. The results show that green finance effectively promotes enterprise ESG performance. Different types of green finance tools can have positive effects, but the degree of impact is different. EE plays both a mediating role and a threshold effect in the relationship between the two. From the perspective of mediation effects, green finance promotes the development of ESG by improving corporate energy efficiency. In terms of threshold effect, as enterprises 'EE level improves, GF's positive impact on enterprises ESG performance become more significant. Heterogeneous analysis shows that the impact of green finance on corporate ESG is more obvious in highly polluting industries, state-owned enterprises, central cities and areas with developed digital financial systems. The findings also explains that corporate ESG has a group effect. This effect can have a positive impact on both financial performance and environmental performance. This study reveals the role of energy efficiency in the relationship between green finance and ESG, and provides inspiration for enterprises to use green finance.
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