Corporate climate policy and green sustainable revenue: the role of green marketing, board expertise, and technology in London Stock Exchange non-financial firms

Corporate climate change has become a critical concern for firms as increasing regulatory pressure, stakeholder expectations, and environmental risks require organisations to adopt effective climate strategies. Although corporate climate policies are increasingly recognised as important drivers of environmental sustainability, limited empirical evidence exists regarding their contribution to firms’ green revenue generation and the conditions under which this relationship is strengthened. This study examines the effect of corporate climate policy on green revenue and investigates the moderating roles of green marketing intensity, board environmental expertise, and green technology capability. Using purposive sampling and predefined selection criteria from the Bloomberg database, this study analyses a balanced panel dataset comprising 449 non-financial firms listed on the London Stock Exchange over a 20-year period from 2005 to 2024. After conducting diagnostic tests, the study employs advanced panel data estimation techniques, including the Augmented Mean Group (AMG), Common Correlated Effects Mean Group (CCEMG), and two-step difference Generalised Method of Moments (GMM) estimators. The results reveal that corporate climate policy has a positive and statistically significant effect on green revenue. The findings further show that green marketing intensity, board environmental expertise, and green technology capability positively and significantly moderate the relationship between corporate climate policy and green revenue. The study demonstrates that firms with stronger climate-oriented strategies, greater environmental expertise at the board level, higher investment in green technologies, and stronger green marketing capabilities achieve higher levels of green revenue. These findings highlight the importance of integrating climate policies with complementary organisational capabilities to enhance firms’ ability to generate environmentally sustainable revenue.