Does corporate green investment matter? Evidence from biodiversity conservation

Abstract

Purpose Biodiversity conservation is essential for corporate sustainability, yet empirical evidence on the relationship between firm-level green commitment and biodiversity exposure remains limited. This study aims to examine the relationship between corporate green investment and biodiversity conservation initiatives. Design/methodology/approach This study uses a sample of listed firms from the United States (the USA) covering the period 2002–2023 and uses regression analyses with sector and year fixed effects. To ensure robustness, this study also uses alternative measures and adopts various methods to address potential endogeneity problems. Findings The results of this study show that green investment is positively associated with biodiversity conservation initiatives, and this positive relationship is stronger for firms operating in carbon-intensive sectors. Additional analyses further reveal that the positive association observed in carbon-intensive sectors is more pronounced for firms that have sustainability committees and for firms that have adopted the GRI guidelines. Furthermore, ESG performance positively moderates the relationship between green investment and biodiversity conservation initiatives. Practical implications The findings of this study contribute to the extant literature and provide valuable implications for corporate leaders, national governments and regulators aiming to protect ecosystems and conserve biodiversity. Originality/value To the best of the author’s knowledge, this study is among the first to uncover the association between green investment and biodiversity conservation in the context of US firms. This study extends the existing literature by emphasizing the role of green investments in conserving biodiversity and ecosystems, particularly in carbon-intensive sectors.