08 Jul 2026
Against the backdrop of China’s steady advancement of the dual carbon goals — carbon peaking by 2030 and carbon neutrality by 2060 — ESG (Environmental, Social, Governance) has become a core pillar for corporate sustainable operation and the nation’s green low-carbon transition. A large-sample empirical study based on China’s market systematically sorts out the internal mechanism linking ESG performance to corporate pollution governance. It verifies that sound ESG practice is far more than symbolic disclosure on paper; instead, it serves as a key driving force that effectively pushes enterprises to deliver genuine environmental accountability and deepen pollution control efforts.
The research, entitled “From ESG Performance to Environmental Stewardship: Evidence from Corporate Pollution Governance in China”, by Dr Cheng Xu has been accepted for publication in Business Strategy and the Environment, a top-tier international peer-reviewed journal (SSCI Q1, ABS 3, Impact Factor = 10.2).
By examining corporate pollution governance practices among Chinese listed firms, Dr Cheng Xu’s study reveals that strong ESG performance significantly improves corporate pollution governance and leads to genuine environmental stewardship, rather than merely symbolic disclosure. The findings confirm that ESG is not just a reporting exercise, but a powerful mechanism that reduces emissions, enhances resource efficiency, and creates long-term sustainable value.
The study identifies three core mechanisms through which ESG performance translates into superior environmental outcomes: improved information transparency, increased environmental investment, and enhanced ESG ratings. Together, these channels strengthen corporate accountability, reduce regulatory and litigation risks, and encourage firms to move beyond compliance toward proactive environmental governance.
Notably, the effect is especially pronounced in pollution-intensive industries such as manufacturing, chemicals, and energy. The research also shows that state-owned enterprises and private firms can leverage different comparative advantages — policy support and financing access for SOEs, and voluntary disclosure for private firms — to strengthen green development.
Dr Xu’s research carries clear and actionable implications for managers, policymakers, investors, and regulators:
For corporate managers, ESG performance, especially the environmental pillar, should be treated as a core strategic indicator rather than a peripheral activity. Firms are advised to establish specialized environmental governance mechanisms, link emission reduction targets to executive incentives, and increase investment in green technologies and low-carbon operations.
For policymakers, the study supports strengthening mandatory ESG disclosure, unifying domestic and international standards, and designing incentive-based policies such as tax benefits and green financing to reward firms with verified pollution reduction.
For investors and financial institutions, ESG performance and pollution governance should be integrated into investment decision-making and lending practices to guide capital toward truly sustainable enterprises rather than greenwashing.
The study contributes to the global understanding of ESG and environmental governance by providing systematic, large-sample evidence from the world’s largest emerging market. It demonstrates that market-driven ESG systems can effectively complement traditional environmental regulation to accelerate green transition.
About Dr Cheng Xu
Dr Cheng Xu focuses on AI-driven Sustainable Development. A core member of the Big Data Analytics and Modelling Research Centre at Xi’an Jiaotong-Liverpool University and an adjunct lecturer in Business Analytics Shanghai Jiao Tong University, Dr Xu engages students in examining the sweeping changes precipitated by AI in contemporary markets and corporate landscapes.
His scholarship, which includes work recognized as an ESI Global Highly Cited publication, has been published in well-regarded international journals such as Social Science and Medicine (ABS 4), Journal of Business Ethics (FT 50), Journal of Accounting Literature (ABS 3), International Review of Financial Analysis (ABS 3), Journal of Business Research (ABS 3), International Journal of Human-Computer Interaction (CCF B), Business Strategy and the Environment (ABS 3), Pacific-Basin Finance Journal (ABDC-A), Journal of Innovation and Knowledge (ABDC-A), Global Finance Journal (ABDC-A), and Journal of Economic Psychology (ABDC-A). He has also received recognition for his contributions, including the China Family Business Highest Award on two occasions, the Mao Lixiang Family Business Research Award, and the Wiley China High Contribution Author Award.
Dr Xu actively serves in editorial capacities that bridge the social and natural sciences, including Associate Editorships at Humanities and Social Sciences Communications (CAS Humanities Q1 & JCR Q1). He contributes to the Neuroeconomic Management Committee as an executive member under the China Society of Technology Economics, a leading academic society in China.
Prior to his Ph.D., Dr Xu amassed industry experience, acting as a strategy manager and CEO’s special assistant at Beijing Science Park Development Group—operator of the Zhongguancun Science Parks—and as a senior investment manager for multinational real estate funds. He was involved in multimillion-dollar M&A and investment projects, and as a strategy and management consultant he advised firms such as Sheraton Hotels and Resorts, Beijing Tourism Development Committee, China Communications Construction Group, and Beijing Airport Economic Development Co., Ltd. Earlier in his career, Dr Xu worked part-time in luxury retail at Tokyo, New York, London and Shanghai, gaining cultural insight and consumer knowledge that inform his research.
About journal
Business Strategy and the Environment is a leading international journal publishing high-quality interdisciplinary research at the intersection of business strategy, sustainability, and environmental management. It is ranked SSCI Q1 and ABS 3, and is widely recognized as a flagship outlet for sustainability and business research worldwide.
08 Jul 2026