Greener Futures: How Sustainability Performance Moderates CSR and Carbon Emissions in Chinese Companies

Abstract

This chapter empirically examines how sustainability performance (SP) moderates the relationship between corporate social responsibility (CSR) and carbon emissions through Chief Sustainability Performance (CSP). While prior studies have explored the CSR environmental performance link, the moderating role of SP remains underexplored. Using a sample of 300 Chinese listed companies from 2010 to 2024, this study addresses this gap by analysing the dynamic interaction between sustainability practices, CSR and carbon emissions. Structural equation modelling (SEM) is employed to investigate the complex relationships among these variables. By considering SP as a key factor influencing both CSR activities and environmental outcomes, this study explores whether firms with strong SP are more effective in reducing carbon emissions and enhancing CSR practices. The findings reveal that SP significantly moderates the CSR carbon emissions relationship. Specifically, firms with higher SP are better positioned to implement CSR activities that lead to more substantial emission reductions. These results underscore the critical role of sustainability practices in shaping corporate environmental strategies. They suggest that firms with strong SP tend to adopt practices aligned with long-term environmental goals and broader societal benefits. This study contributes to the literature by establishing both direct and moderating links between SP, CSR and carbon emissions. It also emphasises the importance of integrating sustainability as a strategic priority for Chinese firms in an era of growing environmental awareness and regulatory scrutiny.