The impact of sustainable development planning in resource-based cities on corporate ESG–Evidence from China

Abstract

This study explores the impact of sustainable development in resource-based cities on corporate environmental, social, and governance (ESG). The study analyzes data from Chinese A-share listed companies between 2010 and 2021, with the National Plan for Sustainable Development of Resource-based Cities, 2013–2020 (NPSDRBC) as a quasi-natural experiment. The results indicate that the implementation of NPSDRBC encourages companies to fulfill their ESG responsibilities, especially when they possess abundant redundant resources and are able to make more efficient resource allocation. The robustness of the results is validated through a series of rigorous tests. Furthermore, the positive impact of NPSDRBC on corporate ESG is significantly stronger in non-state-owned enterprises (non-SOEs), in central region and in heavy polluting industries. In short, this study comprehensively describes the effects of NPSDRBC, identifies key factors that facilitate ESG, and provides a novel perspective for achieving sustainable development for resource-based cities in China.