Economic vulnerabilities and sustainability in energy utilities: Managing climate change in the face of geopolitical turmoil

Abstract

This study investigates the implications of climate change on the environmental management strategies adopted by Chinese energy utility companies over the period from 2008 to 2021. The study highlights that an increase in temperatures correlates with a greater likelihood of these firms implementing environmental management strategies. This tendency is particularly pronounced among companies characterized by lower revenue levels, elevated operational costs, increased media scrutiny, or a comparatively weaker commitment to social responsibilities. Additionally, the analysis reveals that improved carbon performance mitigates this effect, whereas state ownership amplifies the observed trends. This research contributes to understanding the dynamic interplay between climate change and corporate environmental strategy within the context of Chinese energy utilities.

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