Beyond the CEO: The Role of Subordinate Executives' Horizons in Shaping Corporate Carbon Emissions

ABSTRACT Although research on the role of top management in shaping firms' carbon emissions has received considerable scholarly attention, it is largely focused on the chief executive officers and, to a lesser extent, a few individual top management team members. This overlooks the collective role of other chief functional executives in the top management team, termed as subordinate executives. Drawing on upper echelons theory, we examine how the subordinate executives' horizon influences firms' carbon emissions. Using a sample of US‐listed firms, we find a robust negative association between subordinate executives' horizon and carbon emissions, indicating that long‐term‐oriented executives prioritize sustainability initiatives. The relationship is moderated by institutional ownership and financial constraints and partially mediated by the presence of sustainability committees. Notably, sustainability committees may be more symbolic than substantive. Overall, the findings highlight the critical role of subordinate executives in shaping environmental outcomes and advancing corporate sustainability strategies.