国际清算银行-CEO离职风险与企业环境绩效（英）-2024.5-40页_1mb

CEO Turnover Risk and Firm Environmental Performance Summary

CEO Cornelli, Erdem, and Zakrajšek analyze the relationship between CEO turnover risk and firm environmental performance. Key findings include:

1. Negative Impact on Environmental Performance: CEO turnover risk correlates with lower environmental performance, particularly environmental innovation. Higher risk leads to a deterioration in overall environmental scores and ESG controversies.

2. ESG-Pay Clauses Ineffective: ESG-pay clauses in executive compensation do not significantly mitigate the negative effects of turnover risk on environmental metrics, particularly environmental innovation, which requires longer-term investment. This may be due to compensation clauses focusing more on governance and social metrics, rather than environmental R&D.

3. Scope 2 & 3 Emissions Increase: While scope 1 emissions remain unchanged, scope 2 and 3 emissions increase under higher turnover risk, highlighting "carbon leakage"—a strategic shift to avoid direct emission controls. This suggests firms may relocate emissions indirectly to reduce costs and boost short-term returns.

4. Short-Termism as a Channel: The negative effect is attributed to short-termism, where CEOs prioritize immediate performance over long-term environmental investment. This strategic shift harms environmental innovation and ESG controversies. Instrumental variable analysis confirms short-termism is the primary mechanism.

5. Policy Implications: The findings underscore the need for policies that incorporate environmental considerations into CEO compensation to protect long-term sustainability goals. Even measures tied to ESG performance may not address core issues effectively.