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ESG performance and green innovation in commercial banks: Evidence from China

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  • Qiliang Wang
  • Yingchun Zhang
  • Yang Li
  • Peihao Wang

Abstract

Environmental, Social, and Governance (ESG) is closely related to commercial banks’ promotion of "dual-carbon" goals and the concept of sustainable development. The impact of ESG performance on commercial banks’ support for green innovation remains an issue for in-depth study. This paper studies 36 Chinese commercial banks in China from 2010 to 2021 and finds that the ESG performance of commercial banks can promote green innovation, and this promotion is more obvious when bank remuneration incentives are effective. Meanwhile, this paper verifies the mediating role of the non-performing loan ratio and the Lerner index in it, which provides channel support for ESG to effectively promote green innovation development. This study enriches the existing literature on environmental, social, and governance performance and green innovation in commercial banks and provides new perspectives and directions for future research.

Suggested Citation

  • Qiliang Wang & Yingchun Zhang & Yang Li & Peihao Wang, 2024. "ESG performance and green innovation in commercial banks: Evidence from China," PLOS ONE, Public Library of Science, vol. 19(11), pages 1-18, November.
    • Handle: RePEc:plo:pone00:0308513
    DOI: 10.1371/journal.pone.0308513
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    1. Mariana Bunea & Camelia-Daniela Hategan & Rodica Gabriela Blidisel & Adrian Doru Bigioi, 2025. "Adaptation of Banks to Sustainability Requirements and Impact on Their Financial Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 27(70), pages 771-771, August.

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