Corporate commitment to climate change: The effect of eco-innovation and climate governance

Climate change represents a significant problem to the planet which raises concerns from stakeholder groups about corporate commitment climate issues. In this paper, we explore effect of eco-innovation and governance on change. We develop unique measure for by considering four components, viz. whether company supports Sustainable Development Goal 13 action, is aware that can represent commercial risks or opportunities, reports Scope 3 CO2 emissions sets target emission reduction. using score collected Eikon database reflects company's capacity reduce environmental costs, intensity measured as expenditures over revenues. also create an index computed composite totalling five proxies reflect companies' efforts impact. Concerning governance, focus three proxies, namely existence committee, incentives sustainability reports. Based sample companies listed London Stock Exchange period 2014–2020, find positively associated with commitment. argue firms adopt innovative approaches efficiently control pollution resource use their impact are more committed claim integrate issues in help address opportunities. Our empirical evidence provides recommendations managers policymakers promote adoption eco-innovative technologies contribute