IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05280243.html

Green project investments and corporate responsibilities: enablers, challenges, and strategies for mitigating risks

Author

Listed:
  • Xiaozhen Guo

    (School of Economics and Management, Xiamen University of Technology)

  • Meena Bhatia

    (IIM Sambalpur - Indian Institute of Management Sambalpur)

  • Bhumika Gupta

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], Galgotias University)

  • Enrico Battisti

    (Department of Management "Valter Cantino", University of Turin, Turin, Italy., SU - Sohar University)

Abstract

To achieve carbon neutrality, it is crucial that private commercial and noncommercial firms also do their bit to adopt and implement green projects (GPs). Nonetheless, there is a lack of scholarly understanding regarding the elements that influence the implementation of GP by private firms, as well as the barriers to GP adoption and strategies to overcome them. This study seeks to fill the existing knowledge vacuum by examining open-ended essays to provide useful perspectives into the experiences and viewpoints of organizations that have implemented GP. The qualitative data collected were analyzed to determine four unique dimensions, including a variety of elements connected to GP implementation. (a) The study identifies four enablers that push firms to go for GP and three critical areas during the evaluation. (b) The study further identifies four major stumbling blocks of resource management, project viability, external issues, and integration challenges that affect GP and three risk management strategies to overcome these. Our study adds essential theoretical and practical perspectives to the ongoing debate about implementing GP in a comprehensive and inclusive manner.

Suggested Citation

  • Xiaozhen Guo & Meena Bhatia & Bhumika Gupta & Enrico Battisti, 2026. "Green project investments and corporate responsibilities: enablers, challenges, and strategies for mitigating risks," Post-Print hal-05280243, HAL.
    • Handle: RePEc:hal:journl:hal-05280243
    DOI: 10.1002/csr.70177
    Note: View the original document on HAL open archive server: https://hal.science/hal-05280243v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05280243v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.70177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A. Hacura & M. Jadamus-Hacura & A. Kocot, 2001. "Risk analysis in investment appraisal based on the Monte Carlo simulation technique," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 20(4), pages 551-553, April.
    2. Marzhan Beisenbina & Laura Fabregat‐Aibar & Maria‐Glòria Barberà‐Mariné & Maria‐Teresa Sorrosal‐Forradellas, 2023. "The burgeoning field of sustainable investment: Past, present and future," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 649-667, April.
    3. David Atkin & Azam Chaudhry & Shamyla Chaudry & Amit K. Khandelwal & Eric Verhoogen, 2017. "Organizational Barriers to Technology Adoption: Evidence from Soccer-Ball Producers in Pakistan," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1101-1164.
    4. Engwall, Mats, 2003. "No project is an island: linking projects to history and context," Research Policy, Elsevier, vol. 32(5), pages 789-808, May.
    5. Jurate Jaraite & Andrius Kazukauskas & Tommy Lundgren, 2014. "The effects of climate policy on environmental expenditure and investment: evidence from Sweden," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(2), pages 148-166, July.
    6. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    7. Christophe Revelli & Jean-Laurent Viviani, 2015. "Financial performance of socially responsible investing (SRI): what have we learned? A meta-analysis," Post-Print halshs-01141295, HAL.
    8. Hui Li & Quanxue Deng & Jingxiao Zhang & Ayokunle Olubunmi Olanipekun & Sainan Lyu, 2019. "Environmental Impact Assessment of Transportation Infrastructure in the Life Cycle: Case Study of a Fast Track Transportation Project in China," Energies, MDPI, vol. 12(6), pages 1-15, March.
    9. ZHANG, Jing & ZI, Shuang, 2021. "Socially responsible investment and firm value: The role of institutions," Finance Research Letters, Elsevier, vol. 41(C).
    10. Yusuf Yalcin Ileri & Ozer Arik, 2018. "Investigation of Resistance, Perception and Attitudes of Employees against Change in Information Systems Using Change Management Approach: A Study in a University Hospital," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-21, December.
    11. Louise Ellison & Sarah Sayce & Judy Smith, 2007. "Socially Responsible Property Investment: Quantifying the Relationship between Sustainability and Investment Property Worth," Journal of Property Research, Taylor & Francis Journals, vol. 24(3), pages 191-219, September.
    12. Gjalt Huppes & Masanobu Ishikawa, 2005. "A Framework for Quantified Eco‐efficiency Analysis," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 25-41, October.
    13. Su, Tong & Lin, Boqiang, 2022. "The liquidity impact of Chinese green bonds spreads," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 318-334.
    14. Alan Collins & Richard I. D. Harris, 2005. "The Impact Of Foreign Ownership And Efficiency On Pollution Abatement Expenditure By Chemical Plants: Some Uk Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(5), pages 747-768, November.
    15. Farooq, Umar & Wen, Jun & Tabash, Mosab I. & Fadoul, Modawi, 2024. "Environmental regulations and capital investment: Does green innovation allow to grow?," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 878-893.
    16. Beirne, John & Renzhi, Nuobu & Volz, Ulrich, 2021. "Feeling the heat: Climate risks and the cost of sovereign borrowing," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 920-936.
    17. Park, Dojoon & Kang, Yong Joo & Lee, Jiyoon, 2023. "Carbon intensity, default risk, and investors’ attention to environment: Evidence from South Korea," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1104-1121.
    18. Bian, Huabin & Jin, Fei & Tong, Xinle, 2023. "Carbon reduction consciousness, determinants and value of low-carbon transition: Evidence from textual and empirical analysis of Chinese listed manufacturing enterprises," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 1301-1323.
    19. Roger Flage & Piero Baraldi & Enrico Zio & Terje Aven, 2013. "Probability and Possibility‐Based Representations of Uncertainty in Fault Tree Analysis," Risk Analysis, John Wiley & Sons, vol. 33(1), pages 121-133, January.
    20. Hu, Yuanfeng & Tian, Yixiang, 2024. "The role of green reputation, carbon trading and government intervention in determining the green bond pricing: An externality perspective," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 46-62.
    21. E Gilbert, 2005. "Capital budgeting: A case study analysis of the role of formal evaluation techniques in the decision making process," South African Journal of Accounting Research, Taylor & Francis Journals, vol. 19(1), pages 19-36, January.
    22. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    23. Bronwyn H. Hall, 2002. "The Assessment: Technology Policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(1), pages 1-9, Spring.
    24. Martin, Patrick R. & Moser, Donald V., 2016. "Managers’ green investment disclosures and investors’ reaction," Journal of Accounting and Economics, Elsevier, vol. 61(1), pages 239-254.
    25. Bauer, Rob & Otten, Roger & Rad, Alireza Tourani, 2006. "Ethical investing in Australia: Is there a financial penalty?," Pacific-Basin Finance Journal, Elsevier, vol. 14(1), pages 33-48, January.
    26. Goss, Allen & Roberts, Gordon S., 2011. "The impact of corporate social responsibility on the cost of bank loans," Journal of Banking & Finance, Elsevier, vol. 35(7), pages 1794-1810, July.
    27. Bai, Rui & Lin, Boqiang, 2024. "Green finance and green innovation: Theoretical analysis based on game theory and empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 760-774.
    28. Incheol Kim & Hong Wan & Bin Wang & Tina Yang, 2019. "Institutional Investors and Corporate Environmental, Social, and Governance Policies: Evidence from Toxics Release Data," Management Science, INFORMS, vol. 65(10), pages 4901-4926, October.
    29. Magnani, Giovanna & Gioia, Denny, 2023. "Using the Gioia Methodology in international business and entrepreneurship research," International Business Review, Elsevier, vol. 32(2).
    30. Frank Lefley & Joseph Sarkis, 2005. "Applying the FAP Model to the Evaluation of Strategic Information Technology Projects," International Journal of Enterprise Information Systems (IJEIS), IGI Global Scientific Publishing, vol. 1(2), pages 69-90, April.
    31. Wang, Jiaqi & Tian, Jiaxin & Kang, Yuxin & Guo, Kun, 2023. "Can green finance development abate carbon emissions: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 73-91.
    32. Eri Nakamura, 2011. "Does Environmental Investment Really Contribute to Firm Performance? An Empirical Analysis Using Japanese Firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 1(2), pages 91-111, December.
    33. Hanna Hottenrott & Bettina Peters, 2012. "Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation?," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1126-1142, November.
    34. Eyraud, Luc & Clements, Benedict & Wane, Abdoul, 2013. "Green investment: Trends and determinants," Energy Policy, Elsevier, vol. 60(C), pages 852-865.
    35. Eri Nakamura, 2011. "Does Environmental Investment Really Contribute to Firm Performance? An Empirical Analysis Using Japanese Firms," Eurasian Business Review, Eurasia Business and Economics Society, vol. 1(2), pages 91-111, Fall.
    36. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 1-51.
    37. Francesca Nocca, 2017. "The Role of Cultural Heritage in Sustainable Development: Multidimensional Indicators as Decision-Making Tool," Sustainability, MDPI, vol. 9(10), pages 1-28, October.
    38. Ke Huang & Sheng Fang & Changsheng Xu & Xuesong Qian, 2019. "Effect of political connections on corporate financial constraints: new evidence from privatization in China," Applied Economics Letters, Taylor & Francis Journals, vol. 26(8), pages 638-644, May.
    39. Zhang, Dongyang, 2021. "Green credit regulation, induced R&D and green productivity: Revisiting the Porter Hypothesis," International Review of Financial Analysis, Elsevier, vol. 75(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marzhan Beisenbina & Laura Fabregat‐Aibar & Maria‐Glòria Barberà‐Mariné & Maria‐Teresa Sorrosal‐Forradellas, 2023. "The burgeoning field of sustainable investment: Past, present and future," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 649-667, April.
    2. Ren, Fangrong & Liu, Xiaoyan & Charles, Vincent & Zhao, Xin & Balsalobre-Lorente, Daniel, 2025. "Integrated efficiency and influencing factors analysis of ESG and market performance in thermal power enterprises in China: A hybrid perspective based on parallel DEA and a benchmark model," Energy Economics, Elsevier, vol. 141(C).
    3. Claudia Ghisetti & Susanna Mancinelli & Massimiliano Mazzanti & Mariangela Zoli, 2017. "Financial barriers and environmental innovations: evidence from EU manufacturing firms," Climate Policy, Taylor & Francis Journals, vol. 17(0), pages 131-147, June.
    4. Claudia Ghisetti & Massimiliano Mazzanti & Susanna Mancinelli & Mariangela Zoli, 2015. "Do financial constraints make the environment worse off? Understanding the effects of financial barriers on environmental innovations," SEEDS Working Papers 0115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jan 2015.
    5. Zhu, Aiping & Chen, Qing, 2025. "Is too much green investment a good thing for corporate sustainable development performance?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2164-2182.
    6. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    7. Jose García‐Quevedo & Elisenda Jové‐Llopis & Ester Martínez‐Ros, 2020. "Barriers to the circular economy in European small and medium‐sized firms," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2450-2464, September.
    8. Yuan, Na & Gao, Yihong, 2022. "Does green credit policy impact corporate cash holdings?," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    9. Aldieri, Luigi & Bruno, Bruna & Makkonen, Teemu & Vinci, Concetto Paolo, 2023. "Environmental innovations, geographically mediated knowledge spillovers, economic and environmental performance," Resources Policy, Elsevier, vol. 81(C).
    10. Jing Zou, 2024. "RETRACTED ARTICLE: The Relationship Between Corporate Financialization and Digital Finance in the Era of Digital Transformation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13425-13448, September.
    11. Mendi, Pedro & Mudida, Robert, 2018. "The effect on innovation of beginning informal: Empirical evidence from Kenya," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 326-335.
    12. Zhou, Zhifang & Yang, Zhuoxuan & Li, Huijia & Liu, Jinhao, 2025. "Regional climate change action and corporate ESG performance - Evidence from China," International Review of Economics & Finance, Elsevier, vol. 100(C).
    13. Horbach, Jens & Rammer, Christian, 2018. "Energy transition in Germany and regional spill-overs: The diffusion of renewable energy in firms," Energy Policy, Elsevier, vol. 121(C), pages 404-414.
    14. Marijke J. D. Bos & Gonzague Vannoorenberghe, 2018. "Total factor productivity spillovers from trade reforms in India," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 549-606, May.
    15. Lars Hornuf & Gül Yüksel, 2022. "The Performance of Socially Responsible Investments: A Meta-Analysis," CESifo Working Paper Series 9724, CESifo.
    16. Alain Devalle & Simona Fiandrino & Valter Cantino, 2017. "The Linkage between ESG Performance and Credit Ratings: A Firm-Level Perspective Analysis," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(9), pages 1-53, August.
    17. Hans B. Christensen & Luzi Hail & Christian Leuz, 2021. "Mandatory CSR and sustainability reporting: economic analysis and literature review," Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
    18. Andreas Menzel, 2017. "Knowledge Exchange and Productivity Spill-overs in Bangladeshi Garment Factories," CERGE-EI Working Papers wp607, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    19. Francesco Amodio & Miguel A. Martinez-Carrasco, 2023. "Workplace Incentives and Organizational Learning," Journal of Labor Economics, University of Chicago Press, vol. 41(2), pages 453-478.
    20. Ugur, Mehmet & Trushin, Eshref, 2018. "Asymmetric information and heterogeneous effects of R&D subsidies: evidence on R&D investment and employment of R&D personel," Greenwich Papers in Political Economy 21943, University of Greenwich, Greenwich Political Economy Research Centre.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05280243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.