The Impact of ESG Performance on Green Innovation among Traditional Energy Enterprises—Evidence from Listed Companies in China

Round 1

Reviewer 1 Report

1. The abstract did not follow the format of sustainability, further it is incomplete, authors did not mention anything about methods, tool, major findings etc. they needs to read out a few abstracts and re write their abstract.

2. Article does not give an overview of objectives in the introduction section, what were the objectives and main research questions must be mentioned in the introductory section and whether study has archived its objectives or not, if yes, then mention it, if not then write why/ reasons.

3. The conclusion section is also missing, conclusion is compulsory part of any research activity including publication, they are required to write down sound conclusion.

4. How this study is novel and unique from the previous studies, authors must shed light in form of contributions of the study into theory and practice.

5. The limitations and future implications for research, theory, and practice are also missing, they must be added before list of references.

Minor changes are suggested

Author Response

Please see the attachment.

Author Response File: Author Response.pdf

Reviewer 2 Report

I am pleased to have the opportunity to review this research paper titled - The Impact of ESG Performance on Green Innovation among Traditional Energy Enterprises — Evidence from Listed Companies in China. This study examines the impact of Environmental, Social, and Governance (ESG) performance on green innovation in conventional energy businesses, specifically concentrating on Chinese A-share listed companies between 2013 and 2022. This study examines the need for traditional energy companies to make environmentally friendly changes and assesses how ESG performance might help facilitate this transition, considering the increasing environmental difficulties and energy concerns. The summary succinctly expresses the need to measure sustainable development using ESG measures and highlights the essentiality of green innovation in attaining these goals. Utilising robustness testing to confirm findings enhances the credibility of the study. In addition, the abstract suggests investigating the cause and possible variations in the connection between ESG performance and green innovation while recognising the disruptions caused by organisational structures and market uncertainties. The remarkable contribution is the discovery that environmental, social, and governance (ESG) performance has a more significant influence on promoting green innovation in state-owned companies compared to non-state-owned companies.

Additionally, analysing how competitive market conditions affect this connection provides valuable insights. The abstract provides a concise and informative summary of the study, encompassing the study's objectives, research approach, and significant discoveries. It offers unique perspectives on the relationship between ESG performance and green innovation in China's conventional energy industry.

The introduction follows a coherent framework, moving systematically from the overall background of climate concerns to the particular emphasis on China's conventional energy industry and the influence of ESG performance in promoting environmentally friendly advancements. The obstacles conventional energy corporations encounter and the possible remedies offered by green innovation and ESG performance are well articulated. The literature analysis provides a comprehensive framework for the study by examining prior studies on the correlation between environmental legislation, business ESG performance, and green innovation. The text offers pertinent instances and studies to substantiate the claims regarding the influence of ESG performance on innovation endeavours. This text offers a concise and precise definition and explanation of ESG, emphasising its development from the idea of corporate social responsibility (CSR) and its growing significance in investing choices. This lucidity aids readers in comprehending the importance of ESG indicators in evaluating firms' dedication to sustainability and social responsibility.

Furthermore, it explicitly delineates the goals of the study, which encompass broadening comprehension of the green revolution in the conventional energy industry, including ESG performance into the evaluation of factors driving green innovation, and offering unique insights about China's publicly traded traditional energy firms. The research clearly and effectively presents its contributions, such as assisting organisations with outstanding environmental, social, and governance (ESG) performance in obtaining resources for environmentally-friendly transformation. These contributions are well-explained and directly applicable.

The coherence among various segments of the introduction is seamless, as the transitions adeptly connect each component to the overarching storyline. Nevertheless, the presentation has some redundancy, particularly in examining the core element of green transformation and the significance of ESG performance, which may be condensed for brevity. The language employed is scholarly and suitable for the topic at hand. Nevertheless, a few recurring phrases or unnecessary sentences might be modified to enhance clarity and conciseness.

The introduction successfully establishes the study environment, aims, and contributions, laying a strong groundwork for the next portions of the article. Making little changes to improve brevity and clarity will captivate readers and equip them for the comprehensive examination and discoveries offered in the subsequent parts.

Section 2 outlines the theoretical mechanisms and assumptions and provides a systematic framework for comprehending the connection between ESG performance and green innovation in conventional energy firms. Each chapter focuses on a distinct facet of the correlation between ESG performance and green innovation. The logical progression from analysing the influence of ESG performance on green innovation to examining variables, including investment in innovation, external oversight, and government subsidies, is well-structured and enhances readers' comprehension of the intricate nature of this connection. The section successfully incorporates information from previous research to substantiate the stated hypothesis. The writers enhance the theoretical foundation of their hypothesis and showcase how their study expands upon existing knowledge in the field by citing earlier studies.

The theories presented in each paragraph are well-stated and based on solid theoretical logic. Their articulation of the predicted links between ESG performance and numerous factors impacting green innovation in traditional energy corporations is evident. Nevertheless, including a concise justification or elucidation for each hypothesis would be advantageous to enhance the understanding of the anticipated causal pathways.

The section adequately considers contextual elements, such as external monitoring and government subsidies, that might impact the correlation between ESG performance and green innovation. The authors recognise the wider institutional and regulatory context in which conventional energy businesses function, strengthening their theoretical framework's reliability.

Although the offered hypotheses are well-elaborated, it would benefit the writers to identify any limits or alternate explanations for their theoretical statements. An in-depth comprehension of the correlation between ESG performance and green innovation may be achieved by considering elements such as industry-specific problems or market dynamics. In some situations, phrases might be made more succinct or restated to improve intelligibility. The readability may be improved by maintaining uniformity in language and minimising unnecessary duplication of words or concepts.

The report exhibits a satisfactory comprehension of the pertinent literature in the discipline and references a suitable array of literature sources about the research at hand. The process is clearly elucidated and facilitates reproducibility. The paper's argument is constructed upon a suitable theory, concepts, and ideas foundation.

The results and conclusions align with the remainder of the study and are thoroughly analysed, emphasising certain practical consequences.

I am certain that this work may be published with modest adjustments, as indicated in the text above. I am confident that the paper may contribute value to the existing literature on this topic.

Author Response

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Author Response File: Author Response.pdf

Reviewer 3 Report

The article is focused on the issue of sustainability and the transformation of businesses using green investments through ESG. Here, the transformation can be a problem for traditional companies, but according to the research it is clear that with an increased number of green innovations in the future there will be a decrease in costs associated with, for example, fees related to environmental pollution. It follows from the article that ESG has a positive impact on the green innovations of companies, and companies are gradually enlightened to these innovations. At the same time, companies are supported by subsidies so that they can apply green innovations. I havent find any discousin of results and comparing with other authors - it can be upgraded. For better presentation of results, some graphs can be added. 

Author Response

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Author Response File: Author Response.pdf