Driving Sustainable Development Goals: The Nexus Between Sustainability Performance and ESG Investment
Corresponding Author
Zain Ul Abideen
School of Finance, Central University of Finance and Economics, Beijing, China
Correspondence:
Zain Ul Abideen ([email protected])
Search for more papers by this authorCorresponding Author
Zain Ul Abideen
School of Finance, Central University of Finance and Economics, Beijing, China
Correspondence:
Zain Ul Abideen ([email protected])
Search for more papers by this authorFunding: The author received no specific funding for this work.
ABSTRACT
This study investigates the influence of sustainability performance on ESG (Environmental, Social, and Governance) investment in Chinese-listed firms, addressing a critical gap in understanding the specific dynamics of sustainability performance within the Chinese context and its role in attracting ESG-focused investment. Employing a quantitative methodology, the research analyzes secondary data from the WIND database, focusing on A-share non-financial companies listed on the China Stock Exchange from 2018 to 2023. The findings reveal that comprehensive sustainability performance, including environmental, social, and governance dimensions, has a significant positive impact on ESG investment. Firms with robust and transparent sustainability disclosures are more likely to attract ESG-oriented investors, highlighting the importance of transparency and accountability in influencing investment decisions. The study aligns with the United Nations Sustainable Development Goals (SDGs) by contributing to SDG 12 (Responsible Consumption and Production) through the promotion of increased corporate sustainability practices, SDG 13 (Climate Action) by encouraging investments in environmentally responsible firms, and SDG 16 (Peace, Justice, and Strong Institutions) by advocating for stronger governance mechanisms. The findings highlight the strategic importance of sustainability performance as a tool for promoting responsible investment and advancing sustainable development goals in China's evolving corporate landscape.
Conflicts of Interest
The author declares no conflicts of interest.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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