Green Investment, Environmental, Social and Governance Disclosures, and Corporate Social Responsibility: The Case of Nigerian Companies

Abstract

Existing research provides little evidence that investments with an environmental focus promote better corporate social responsibility (CSR) practices or are simply symbolic actions in weak institutional environments. Hence, this study investigated the effect of green investment and ESG disclosures on the CSR performance of listed companies in Nigeria. The research was grounded in stakeholder and institutional theories to explain the relationship between environmentally driven investments and corporate social outcomes. Secondary data was collected from annual reports of selected listed companies for ten years and analysed using the Feasible Generalised Least Squares (FGLS) and Driscoll-Kraay Standard Error (DKSE) estimation techniques. The findings revealed that green investment has a positive and significant impact on CSR practices (Z = 4.849, p < 0.01). This implies that companies with higher green investment practices have more participation in environmental protection, community development, and responsible governance. The results also suggested that supporting factors such as green capital expenditure, ESG initiatives, green technological innovation, and carbon emission reduction efforts have an influence on the success of green investment. The study found that green investment improves CSR performance; however, its effect may be reduced to a legitimacy tool where institutional structures are weak. The research indicates that policymakers should tighten sustainability regulations and foster transparent ESG reporting. At the same time, companies should connect green investment to long-term environmental and social strategies to achieve meaningful CSR outcomes.