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June 20, 2026Business Strategy and the Environment

Environment and ESG Performance: Does Climate Risk Shape Corporate ESG Performance? Evidence From the G20 Emerging Economies

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Authors

PRPranith Kumar Roy

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Overview

The study demonstrates how climate risk influences corporate ESG performance in emerging economies, suggesting the need for better national regulations.

Key Points

  • The aim is to examine the relationship between national climate risk and corporate ESG performance while considering the moderating effect of institutional strength.
  • Analyzed a panel dataset of 6511 firm-year observations from G20 emerging economies (2014–2023) using various statistical models including fixed effects and System GMM.
  • Investigated the associations between climate risk, ESG performance, and institutional factors using multilevel modeling.
  • Assessed the role of financial leverage and regulatory strength in moderating the relationship.
  • Found a positive association between climate risk and ESG performance, indicating that climate challenges enhance corporate responsibility.
  • A one standard deviation increase in climate risk results in approximately a 6.5 point increase in ESG responses among firms.
  • Demonstrated that strong institutional strength amplifies the positive link through better regulatory enforcement.

Cite This Study

Pranith Kumar Roy (2026) studied this question.

synapsesocial.com/papers/6a3632d2db0793dc1a5394f6https://doi.org/10.1002/bse.71147
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Political Uncertainty, Climate Risk, and ESG Performance: International Evidence2025
  2. 2External Climate Information Pressure and Corporate <scp>ESG</scp> Performance: How Public Climate Risk Attention Shapes Sustainability Strategy2026 · 1 citations
  3. 3The Moderating Effect of Climate Risk on the Relationship Between ESG Performance and Green Innovation: Evidence from an Emerging Market2026
  4. 4Environmental, Social and Governance ( <scp>ESG</scp> ) Performance and Firm‐Performance: Analyzing the Mediating Role of Institutional Investors2025 · 2 citations
  5. 5Impact of climate risk on financial performance – evidence from select energy companies from select G-20 countries2024 · 3 citations