Climate Governance Action and Corporate Environmental ResponsibilityEvidence from Climate-resilient Cities

Climate governance action is essential for addressing the growing climate crisis and its devastating impact. Taking climate-resilient city construction in 2017 as an opportunity, this study explores the impact of climate governance action on corporate environmental responsibility fulfillment using a double difference method based on 2013—2020 empirical data of Chinese A-share enterprises. The results show that climate governance action can significantly enhance corporate environmental responsibility fulfillment, and the enhancement is increasing over time. As important internal and external governance mechanisms, institutional investors’ shareholding and diversified director boards generate monitoring and governance effects that can effectively strengthen the positive impact of climate governance action on corporate environmental responsibility fulfillment. An exploration of the impact mechanism reveals that the mechanism of climate governance action for enhancing corporate environmental responsibility fulfillment lies in inducing the green innovation effect of enterprises. Heterogeneity analysis shows that climate governance action has a more pronounced effect on enterprises in regions with severe weather hazards and more greenhouse gas emissions, as well as on enterprises with high digital transformation and high pollution. The above findings reveal a strong link between climate governance actions and corporate environmental responsibility commitments, providing important evidence for achieving climate change response and sustainable development.