Seminar (Dept. of Accounting)

Title：What Drives Corporate ESG Practice in China? Evidence from the Field

Speaker: Lu hai, Professor, Guanghua School of Management, Peking University

Time：10:00-11:30, June 20th, 2025 (Friday)

Venue：Room 1008, Mingde Business Building

Language：Chinese & English

ABSTRACT:

This study provides the first large-sample empirical evidence on China’s corporate ESG practices and their evolution by analyzing panel data from longitudinal surveys distributed to Chinese publicly listed firms between 2021 and 2024. Our surveys show that only slightly more than half of executives perceive that investment in ESG increases firm value. While this perception remained stable over the four-year sample period, these firms exhibited substantial progress in integrating ESG into corporate practices. We examine the underlying reasons and find that growing ESG demand from multiple stakeholders — including global supply chain partners, institutional investors, and the government — have driven this advancement. Further component analyses of corporate ESG strategies reveal that firms’ ESG priorities tend to align with their industry-specific ESG exposures, as defined by the SASB materiality standards. Our findings have important implications for academics, regulators, and practitioners in designing effective policies to advance global sustainability goals.