Carbon footprints in the context of financial innovation and human capital transformation: A low-carbon transition or new emission growth points?

Climate change’s severity has escalated, necessitating low-carbon transitions and new financial solutions for governments and businesses. Nonetheless, the relationship between FinTech and labor components related to green innovation in selected Chinese industrial sectors remains understudied. This study investigates the interplay between financial innovation (FI) and workforce transformation on corporate carbon emissions (CCE) using data from Chinese A-share listed companies (2007-2022) through a multi-period difference-in-differences model. We find that, while stimulating economic growth, FI significantly elevates CCE. Workforce transformation is crucial: industrial robots mitigate emissions, reducing the need for a green workforce, while digital HR fosters low-carbon development. The extent of corporate financialization heterogeneously affects the relationship between FI and CCE. FI also reshapes the job market’s scale, quality, and structure. Selected policy recommendations are proposed to enhance FI and environmental protection synergy.