The impact of employees' green competence on ESG performance: The moderating effect of green reward payments and green transformational leadership.

In today's dynamic business landscape, organizations are facing increasing pressures to harmonize their economic pursuits with environmental and social responsibilities. The concept of Environmental, Social, and Governance (ESG) performance has emerged as a critical yardstick for assessing how companies manage their environmental impact, engage with society, and uphold governance practices. ESG performance not only influences a company's reputation but also its financial health and resilience. Employees have ascended to a pivotal role in shaping ESG performance. Their knowledge, skills, and adaptability in sustainability, often termed as "green competence," can significantly influence a company's endeavors to be environmentally conscious, socially responsible, and ethically governed. Two influential factors enter this arena: green reward payments and leadership, especially transformational leadership. Green reward payments, including bonuses tied to sustainability achievements, serve as motivators for employees to actively partake in sustainability initiatives. Leadership, on the other hand, spearheads a culture of environmental responsibility and propels change towards more sustainable practices. This research proposal aspires to delve into the multifaceted relationship between employees' green competence and ESG performance within organizations. Additionally, it aims to scrutinize the moderating effects of green reward payments and green transformational leadership within this framework. By leveraging advanced research methodologies and innovative data analysis, this study seeks to advance our comprehension of the intricate interplay between human capital, financial incentives, leadership, and corporate sustainability.