Firm‐level energy and carbon performance: Does sustainable investment matter?

Pollution reduction is one of the important challenges confronting contemporary business and society. Firms are largely responsible for undertaking sustainable practices initiatives as they major contributors to global pollution. This study empirically examines how investment influences firm energy carbon performance. Using a sample 23,501 firm-year observations from 2440 unique firms over period 2002 2018 in G-6 countries (Canada, France, Germany, Japan, United Kingdom, States), we demonstrate that leads better performance without compromising financial return. Our findings robust alternative variables, sub-samples, different estimation techniques. contributes discussion on sustainability low-carbon economy.