- Research Article
- 10.57260/csdj.2025.283386
The Impact of ESG Investments in Polluting Industries on Environmental Performance: An Empirical Study Based on A-Share Listed Companies in China
- Dec 11, 2025
- Community and Social Development Journal
- Chen Qian
Against the backdrop of China’s “Dual Carbon” objectives and the global imperative for sustainable development, this study investigates the environmental implications of Environmental, Social, and Governance (ESG) investments in heavily polluting industries in China. Drawing upon a sample of A-share listed companies between 2015 and 2024, the Huazheng ESG Rating Index, and key environmental performance indicators including air pollutant emission intensity, clean energy consumption ratio, and carbon emission intensity a fixed-effects model is employed to examine the relationship. The empirical results demonstrate that ESG investments significantly mitigate both air pollutant and carbon emission intensities, while simultaneously fostering the adoption of clean energy. Quantitatively, a one-unit rise in the Huazheng ESG score is associated with a 0.178-log-point (~18%) reduction in SO₂ emission intensity, a 2.298 percentage-point increase in the clean-energy consumption ratio, and a 0.210-log-point (~21%) reduction in CO₂ emission intensity (all p < 0.01), with stronger effects under tighter environmental regulation and greater industrial upgrading. Furthermore, the moderating roles of governmental environmental regulation and industrial upgrading are found to reinforce these effects. This study contributes to the growing body of evidence supporting ESG as a mechanism for advancing pollution reduction and carbon abatement, and it offers actionable implications for policymakers and corporate stakeholders in guiding China’s transition toward a green economy.
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