The synergistic effect of green innovation and governance in carbon neutrality: Insights from Japanese companies
This study highlights the pivotal role of innovation and governance in Japan’s corporate carbon neutrality efforts. Green innovation significantly reduces CO2 emissions, especially in firms with strong ESG frameworks. Governance enhances the impact of sustainable initiatives. Japan’s national strategy and R&D investments further accelerate this transition. Together, these efforts position Japan as a global model for low-carbon development.
TABLE 8. Two-step system GMM.
Technology Overview
This study investigates the impact of innovation and governance on achieving carbon neutrality among Japanese firms listed on the Tokyo Stock Exchange between 2017 and 2023. Using multivariate statistics, regression modeling, and quantitative literature analysis, it explores the interplay between green innovation, corporate governance, and CO2 emissions. The findings confirm a strong negative correlation between green innovation and emissions, especially in firms with higher ESG scores. The research highlights how eco-governance acts as a key mediator in reducing emissions and achieving sustainability goals. Japan's national strategy further accelerates this shift through investments in R&D and policy support for green technologies.
Applications & Benefits
This work demonstrates that green innovation and strong corporate governance are crucial for reducing carbon emissions in the corporate sector. Firms with effective ESG practices are shown to benefit more from eco-innovations. The findings offer practical insights for policymakers and corporate leaders seeking to implement sustainable practices aligned with national climate targets. Japan's strategic focus on technological advancement and systemic support positions it as a global leader in the transition to carbon neutrality. These practices can serve as a model for other countries facing similar environmental challenges.
Abstract：
Japan is firmly committed to transitioning to a low-carbon economy to address climate change. This research focuses on the role of innovation and governance in achieving carbon neutrality among Japanese companies listed on the Tokyo Stock Exchange from 2017 to 2023, particularly in all carbon dioxide-contributing sectors. Through multivariate statistics, regression modeling, and quantitative literature analysis, we provide robust evidence of the relationship among innovation, governance, and carbon neutrality. The findings highlight the importance of fostering a sustainability-oriented culture to drive sustainable innovation and achieve carbon neutrality. We compared the environmental, social, and governance (ESG) and governance to expand our scope. Its results underscore the significance of strong corporate governance in facilitating sustainable initiatives. A robustness test is included to finalize that the samples have avoided endogeneity. These findings demonstrate a positive outlook for Japan's future emissions reduction.
The synergistic effect of green innovation and governance in carbon neutrality: Insights from Japanese companies
Author：Krishnamurthy Baskar Keerthana, Shih-Wei Wu, Thangavelu Kokulnathan, Mu-En Wu
Year：2024
Source publication：Business Strategy and the Environment, Volume33, Issue8, Pages 8055-8066, December 2024
Subfield Highest percentage： 99% Geography, Planning and Development #2 / 841