xthdidregress to estimate the impacts of TGIs on corporate environmental performance

Transnational governance initiatives (TGIs) play a critical role in promoting corporate sustainability. However, their impact on corporate environmental performance, particularly regarding biodiversity and resource management, remains underexplored. This study investigates the effects of TGIs on corporate performance, focusing on greenhouse gas (GHG) emissions, water usage, and energy consumption. We analyze data from 21 transnational companies between 2006 and 2022, examining their participation in the initiatives called UN Global Compact (UNGC), the International Council on Mining and Metals (ICMM) and the GHG Protocol. By applying the methodologies from Callaway and Sant'Anna (2021) and Wooldridge (2021), we find that participation in the UNGC significantly reduces GHG emissions and resource consumption. Additionally, combining UNGC involvement with carbon pricing mechanisms yields synergistic effects, enhancing environmental outcomes. A key contribution of this study is the use of the Stata command xthdidregress to estimate average treatment effects on the treated, accounting for time and treatment cohort variations. This method provides an understanding of how TGIs influence corporate behavior over time. Our findings underscore the importance of incentives in driving sustainable practices, offering empirical evidence that TGIs can contribute to both environmental protection and resource management, reinforcing the economic value of biodiversity and resource conservation.