Green at the top: How CEOs’ environmental experience shapes ESG performance in Chinese firms

As China transitions into a new phase of high-quality economic development, corporate ESG performance has taken on an increasingly critical role, not only in advancing green and sustainable growth but also in shaping new quality productive forces. This study leverages panel data from non-financial firms listed on the Shanghai and Shenzhen A-share markets in China between 2012 and 2022 to examine how CEOs’ environmental experience influences ESG outcomes. The results indicate that CEOs with environmental backgrounds are significantly more likely to enhance corporate ESG performance. Mechanism analyses reveal that this relationship is primarily mediated through a reduction in environmental violations, increased green innovation, and improved mitigation of agency problems. Notably, the positive effect is more pronounced in firms operating in favorable business environments, under conditions of high environmental uncertainty, and within industries not classified as heavily polluting. Further evidence suggests that by strengthening ESG performance, CEOs with environmental experience contribute to the development of new quality productive forces. This study adds to the growing literature on executive characteristics and corporate sustainability and offers practical implications for the formulation and implementation of ESG-related policies.