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Climate (in)action? The relationship between CEO early-life experiences and corporate climate policies

Author

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  • Szymczak, Wiebke
  • Wagner, Simone A.
  • Busch, Timo

Abstract

While the drastic physical impacts of climate change and related natural hazards are increasingly apparent, little is known about the long-term behavioral consequences of climate change-related experiences. Psychological evidence suggests that climate change (CC)-related experiences induce people to make more climate-friendly choices. Building on Upper Echelons Theory and relevant psychological literature, we investigate whether early-life natural hazard experiences of Chief Executive Officers (CEOs) are associated with more climate-friendly policies during their tenure. Our sample covers decisions taken between 1991 and 2018 by 447 US-born CEOs. While we observe an effect of hazard experiences on climate policies, we do not observe the same effect when focusing only on CC-related experiences. This result is robust across different measures of corporate climate performance.

Suggested Citation

  • Szymczak, Wiebke & Wagner, Simone A. & Busch, Timo, 2025. "Climate (in)action? The relationship between CEO early-life experiences and corporate climate policies," Ecological Economics, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolec:v:237:y:2025:i:c:s0921800925001181
    DOI: 10.1016/j.ecolecon.2025.108635
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