Transnational Analysis of ESG Information Disclosure: Environmental Concerns among Listed Companies in China and the United States

Abstract

This research provides a transnational analysis of the environmental concerns embedded within the ESG (Environmental, Social, and Governance) information disclosure practices of listed companies in China and the United States. By examining 10 representative firms from each country, the study aims to highlight the variances in environmental awareness and subsequent actions undertaken by entities in these two major economies. However, as some argue, Nonpecuniary factors, such as ESG considerations, should never take precedence over investment returns, risk or lowering fees. Despite this perspective, our investigation adopts a cross-border lens, offering a more holistic perspective. The primary methodological tools involve evaluating ESG report ratings based on MSCI scoring rules and analyzing word frequencies related to environmental topics in Q4 2022 conference call transcripts. Preliminary findings indicate that the predictive effect of the MSCI score does not significantly differ between the two regions, and the attention to environmental issues, as evidenced by word frequencies, is comparable. The study acknowledges limitations arising from the limited dataset and the temporal scope of the research. Nevertheless, this research presents significant implications for international ESG policymaking, potentially guiding more effective strategies to attain Sustainable Development Goals. It also suggests avenues for further research, particularly in expanding the dataset and refining keyword sentiment analysis methodologies.