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How Firm’s Commitment to ESG Drives Green and Low-Carbon Transition: A Longitudinal Case Study from Hang Lung Properties

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  • Jixun Liu

    (School of Management, Zhejiang Shuren University, Hangzhou 310015, China)

  • Stephen Lau

    (School of Law, Nankai University, Tianjin 300071, China)

  • Shenyi Shirley Liu

    (Business School, Hangzhou City University, Hangzhou 310015, China)

  • Yingde Hu

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

Abstract

Sustainability in business is a subject of growing interest to investors, stakeholders, and companies for overcoming uncertainty. However, it is also questioned with “is this business approach is finance worthy”, how does a firm’s commitment to ESG translate into tangible outcomes that benefit investors? In this paper, textual analysis is applied to the 10-year sustainability report from 2012 to 2021 released by Hang Lung Properties (HLP) to empirically explore its ESG (environmental, social, and governance)-related strategy, initiatives, actions, and outcomes. Employed with a “commitment-action-outcomes” framework, this firm-based longitudinal case study on ESG investigates how HLP deploys and implements corporate sustainability activities, in order to increase its profits as well as stock returns. Our empirical evidence indicates that the firm’s ESG commitment leads to its green and low-carbon transition. Further, it identifies three key enablers of ESG commitment—ESG integration and evolvement, high-intensity ESG effort, and technological innovation—that can spur low-carbon transition and achieve long-term value. This paper contributes to the literature in the following ways. Firstly, it sheds light on the effectiveness of ESG commitments in promoting sustainable business practices. Secondly, it enriches the understanding to build an enterprise’s resilience and self-reliance via ESG initiatives in the face of uncertainty. Lastly, it makes an important methodological contribution by constructing a new employed textual analysis for the ESG research domain.

Suggested Citation

  • Jixun Liu & Stephen Lau & Shenyi Shirley Liu & Yingde Hu, 2024. "How Firm’s Commitment to ESG Drives Green and Low-Carbon Transition: A Longitudinal Case Study from Hang Lung Properties," Sustainability, MDPI, vol. 16(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:711-:d:1318767
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    References listed on IDEAS

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    1. Jane E. Dutton & Susan J. Ashford & Regina M. O’ Neill & Erika Hayes & Elizabeth E. Wierba, 1997. "Reading the wind: how middle managers assess the context for selling issues to top managers," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 407-423, May.
    2. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
    3. Michael Cappucci, 2018. "The ESG Integration Paradox," Journal of Applied Corporate Finance, Morgan Stanley, vol. 30(2), pages 22-28, June.
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    Cited by:

    1. Tao Huang & Xiaoling Yuan & Rang Liu, 2025. "Drivers of Green Transition Performance Differences in China’s Resource-Based Cities: A Carbon Reduction–Pollution Control–Greening–Growth Framework," Sustainability, MDPI, vol. 17(20), pages 1-31, October.
    2. Cao, Jiawei & Tang, Jie, 2024. "Party organization embedding and enterprise labor income share," International Review of Economics & Finance, Elsevier, vol. 96(PB).

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