Environmental, Social, and Governance Ratings in the United Kingdom: Do Eco‐Innovation and Environmental Training Program Matter?

ABSTRACT This study examines the impact of eco‐innovation and environmental training programs on corporate environmental, social, and governance (ESG) ratings in the United Kingdom (UK). The sample includes 1251 firm‐year observations from the London Stock Exchange between 2016 and 2021. Utilizing various regression models, our findings show that both eco‐innovation and environmental training programs significantly enhance corporate ESG ratings in the UK. Further analysis reveals that these programs are crucial drivers of ESG ratings, regardless of firm performance. These results have important implications for policymakers and governments, highlighting the need for action plans to support companies, both practically and financially, in adopting environmental innovations and green training initiatives for their employees.