The Impact of ESG Performance on Green Innovation in Manufacturing Companies in East Asia (China, Japan, and South Korea)

Amalia Khoirun Nisa'; Nurika Restuningdiah

doi:10.17977/jabe.v10i2.63308

The Impact of ESG Performance on Green Innovation in Manufacturing Companies in East Asia (China, Japan, and South Korea)

Amalia Khoirun Nisa', Nurika Restuningdiah

Abstract

This research intends to assess the effect of the performance of ESG on the green innovation. in East Asian manufacturing companies (Japan, China, and South Korea). ESG performance data was obtained from Bloomberg, while green innovation was calculated based on the number of green patents registered in World Intellectual Property Organization (WIPO). The sample consisted of 1,279 publicly listed manufacturing companies selected using purposive sampling techniques during the period 2021–2023. The analysis technique used was Generalized Least Square (GLS) regression. The results showed that ESG performance had a positive effect on green innovation. The results of the study show that ESG implementation can be a strategic basis for management in formulating sustainability policies. Increased transparency, social responsibility, and good governance can strengthen companies' commitment to environmentally friendly innovation. The results of this study can be used by company management as a foundation for enhancing the quality of ESG disclosure and implementation to encourage sustainable green innovation.

Keywords

ESG Performance, Green Innovation, Sustainable Development

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DOI: http://dx.doi.org/10.17977/jabe.v10i2.63308