Unlocking carbon reduction potential: environmental subsidies and executive influence in Chinese listed companies

Key Points

• Carbon reduction potential is significantly influenced by environmental subsidies offered to firms, enhancing their green initiatives.
• Companies led by executives with strong sustainability backgrounds show a notable increase in their efforts to reduce carbon emissions.
• Assessment based on financial performance metrics across a set of Chinese listed companies over multiple years demonstrates clear trends.
• Findings highlight the important role of policy frameworks in shaping corporate sustainability strategies.