The impact of managerial climate attention on corporate ESG performance—evidence from China

Amid growing global concern over climate change, firms are playing an increasingly critical role in achieving sustainable development. Corporate managers are gradually integrating climate considerations into strategic decision-making and risk management. Using a panel dataset of Chinese A-share listed companies from 2009 to 2022, this study examines the impact of managerial climate attention on corporate ESG performance. The results provide robust evidence that increased managerial climate attention significantly improves corporate ESG performance. Further analysis reveals that green technological innovation and environmental investment are the main mechanisms through which this positive effect occurs. Moreover, financial constraints and market attention serve as important moderators that strengthen this relationship. Heterogeneity analysis shows that the positive effect of managerial climate attention is more pronounced in state-owned enterprises, firms in less environmentally sensitive industries, and companies located in eastern China. These findings highlight the vital role of managerial climate attention as an internal force in promoting corporate sustainable development.