Integrating Environmental, Social, Governance into Low-Carbon Environmental Management: An Exploratory Study

Abstract This study explores how environmental, social, governance (ESG) principles enhance low-carbon environmental management systems (LC-EMS), using 2015-2024 panel data from Chinese A-share firms. Fixed-effects models show that all ESG dimensions, environmental, social, and governance, significantly improve carbon reduction rates, with synergistic interactions. Mediation analysis identifies green technology innovation as the primary mechanism, supported by energy efficiency and supply chain collaboration. Heterogeneity tests reveal stronger effects in high-pollution industries, large enterprises, and state-owned enterprises. Findings are validated via robustness and endogeneity tests. We recommend tailored ESG strategies focusing on green R&D and sector-specific policy incentives to accelerate corporate low-carbon transformation.