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Green Finance Policies and Corporate Biodiversity Disclosure: Evidence from China

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Listed:
  • Ting Yang

    (School of Finance, Central University of Finance and Economics, Beijing 102206, China)

  • Kai Wu

    (School of Finance, Central University of Finance and Economics, Beijing 102206, China)

Abstract

This study examines the impact of green finance policies on corporate biodiversity disclosures, focusing on China’s Green Finance Reform and Innovation Pilot Zones (GFPZs). Utilizing a comprehensive dataset of Chinese-listed firms from 2010 to 2022, we apply textual analysis to annual reports to quantify biodiversity-related disclosures. Our findings reveal that GFPZ policies significantly reduce biodiversity disclosures, suggesting a trade-off between carbon-focused financial incentives and broader environmental transparency. Cross-sectional analysis indicates that firms with higher R&D intensity and those in regions with stricter environmental enforcement exhibit fewer negative effects. Mechanism analysis highlights that carbon production intensity and green information disclosure quality mediate this relationship. Robustness checks, including propensity score matching, confirm these results. Our study underscores the need for policymakers to integrate biodiversity considerations into green finance frameworks to ensure balanced ESG priorities.

Suggested Citation

  • Ting Yang & Kai Wu, 2025. "Green Finance Policies and Corporate Biodiversity Disclosure: Evidence from China," Sustainability, MDPI, vol. 17(9), pages 1-21, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:4245-:d:1651043
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    References listed on IDEAS

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    1. Antoine Dechezleprêtre & Misato Sato, 2017. "The Impacts of Environmental Regulations on Competitiveness," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 183-206.
    2. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    3. Tang, Pengcheng & Jiang, Qisheng & Wang, Chao, 2024. "Beyond environmental actions: How environmental regulations stimulate strategic-political CSR engagement in China?," Energy Economics, Elsevier, vol. 129(C).
    4. Nicolas Madison & Eduardo Schiehll, 2021. "The Effect of Financial Materiality on ESG Performance Assessment," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    5. Wang, Quan-Jing & Wang, Hai-Jie & Chang, Chun-Ping, 2022. "Environmental performance, green finance and green innovation: What's the long-run relationships among variables?," Energy Economics, Elsevier, vol. 110(C).
    6. Bhutta, Umair Saeed & Tariq, Adeel & Farrukh, Muhammad & Raza, Ali & Iqbal, Muhammad Khalid, 2022. "Green bonds for sustainable development: Review of literature on development and impact of green bonds," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
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    Cited by:

    1. Ye, Jinfen & Wang, Yubo & Yang, Jiayan, 2025. "Green finance and environmental governance in river basin economies: Mechanism analysis based on green innovation and industrial upgrading in the Yangtze River region," Finance Research Letters, Elsevier, vol. 86(PF).

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