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Green transmission or greenwashing? The spillover effects of customers’ ESG comment letters in supply chain

Author

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  • Li, Ruiqian
  • Tang, Xiaoxuan
  • Dong, Jihui
  • Zhong, Ma

Abstract

This study uses textual analysis to identify environmental, social, and governance (ESG) comment letters and explores whether and how customers' ESG comment letters influence suppliers' ESG greenwashing, utilizing data from Chinese A-share listed companies from 2017 to 2022. We find that customers' ESG comment letters significantly increase suppliers' ESG greenwashing, primarily by exacerbating managerial myopia and financial distress. Heterogeneity analysis indicates that this promoting effect is more pronounced when supply chain regionalization and supply chain opportunism are higher, when suppliers exhibit lower levels of risk-taking, and when suppliers are located in a region with lower environmental regulation intensity. However, this promoting effect does not differ significantly between politically connected and non-politically connected suppliers. The spillover effects of ESG comment letters are asymmetrically transmitted along the supply chain. Overall, this study offers novel insights into the spillover effects of customers’ ESG comment letters and provides practical guidance for mitigating ESG greenwashing from a supply chain perspective.

Suggested Citation

  • Li, Ruiqian & Tang, Xiaoxuan & Dong, Jihui & Zhong, Ma, 2026. "Green transmission or greenwashing? The spillover effects of customers’ ESG comment letters in supply chain," Economic Modelling, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:ecmode:v:159:y:2026:i:c:s0264999326001094
    DOI: 10.1016/j.econmod.2026.107580
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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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