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The Impact of ESG Rating Events on Corporate Green Technology Innovation under Sustainable Development: Perspectives Based on Informal Environmental Regulation of Social Systems

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  • Haoqiang Yuan

    (School of Law, Southeast University, Nanjing 211189, China
    Local Legislation Research Base of Jiangsu Province, Southeast University, Nanjing 211189, China)

  • Haiyan Luan

    (V&T Law Firm, Nanjing 210019, China)

  • Xi Wang

    (Local Legislation Research Base of Jiangsu Province, Southeast University, Nanjing 211189, China
    School of Foreign Studies, Nanjing Forestry University, Nanjing 210037, China
    Institute for Chinese Legal Modernization Studies, Nanjing Normal University, Nanjing 210097, China)

Abstract

Corporate green technology innovation is an important driver to promote the green transformation of the manufacturing industry 4.0 and an important engine to achieve China’s carbon peak, carbon neutrality, and high-quality economic development. Based on the theory of informal environmental regulation of social systems, this study empirically analyzes the impact of ESG rating events on corporate green technology innovation by constructing a multi-period DID model using panel data of Chinese listed companies from 2010 to 2022 as the research sample. The findings suggest that ESG rating events and ESG scores can stimulate corporate green technology innovation. ESG rating uncertainty can inhibit corporate green technology innovation. The mediation effect analysis shows that ESG rating events can stimulate firms’ green technology innovation by reducing financing constraints, increasing the degree of corporate internal control, and increasing R&D investment. In addition, heterogeneity analyses indicate that ESG rating events have a better stimulating effect on the quantity of innovation of non-state-owned enterprises than state-owned enterprises, while the stimulating effect on the quality of innovation of non-state-owned enterprises is inferior to that of state-owned enterprises. Moreover, the innovation stimulation effect of ESG rating events shows a trend of east-high and west-low in geographical distribution. Therefore, the government should accelerate the construction of the ESG rating system, promote the degree of convergence with international standards, and improve the level of enterprises’ utilization of digital technology while paying attention to informal environmental regulation.

Suggested Citation

  • Haoqiang Yuan & Haiyan Luan & Xi Wang, 2024. "The Impact of ESG Rating Events on Corporate Green Technology Innovation under Sustainable Development: Perspectives Based on Informal Environmental Regulation of Social Systems," Sustainability, MDPI, vol. 16(19), pages 1-26, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:19:p:8308-:d:1484663
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    2. Danni Wang & Tingwei Wang, 2025. "Does ESG Information Disclosure Improve Green Innovation in Manufacturing Enterprises?," Sustainability, MDPI, vol. 17(6), pages 1-17, March.
    3. Jiangshan Zhu & Rong Li & Zixuan Chen & Tiantian Zhang, 2025. "Does Ownership Structure Influence the Financial Performance of Chinese Listed Companies? An Analysis of ESG Practices and Accounting-Based Outcomes," IJFS, MDPI, vol. 13(2), pages 1-29, March.

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