The "Brown Greenwashing" Paradox in Transition Finance—An Empirical Examination Based on ESG Rating Discrepancies of High-Carbon Enterprises and Their Access to Green Credit

Abstract

With the advancement of China's "dual carbon" goals, ESG ratings have become a core reference for green credit decision-making. However, high-carbon enterprises may engage in "greenwashing" by strategically disclosing information to embellish their environmental performance for financing purposes, creating a "brown-greenwashing" paradox that challenges the effectiveness of transition finance. To examine this issue, this study innovatively constructs a "greenwashing index" based on data from high-carbon industries such as coal power and steel in China's A-share market from 2015 to 2023. It employs a benchmark regression model for empirical analysis. The study found that ESG ratings have a significant positive impact on the scale of green credit. Still, this effect is significantly negatively moderated by carbon emission intensity, confirming the "greenwashing" behavior of high-emission enterprises. Further analysis reveals that, compared to private enterprises, state-owned enterprises are more likely to obtain green credit through ESG ratings, highlighting the resource bias associated with ownership. This study provides empirical evidence for identifying and curbing "brown washing" and offers targeted recommendations for improving ESG ratings and optimizing credit policies.