| Variable | Code | Definition |
| Green investment | GI | Divide the environmental-related capital expenditure of the enterprise under construction by the year-end total assets, then multiply by 100 |
| Environmental subsidies | Subsidy | Divide government grants related to environmental protection by year-end total assets and multiply by 100 |
| Industry attributes | Pollution | Dummy variable. If the industry the company belongs to is a heavily polluting industry, the value is 1; otherwise, the value is 0 |
| Local government environmental preferences | EP | Local sewage charge income divided by local GDP, then multiplied by 100 |
| Company Size | Size | Natural logarithm of total assets at the end of the year |
| Agency cost | Cost | Overhead rate, overhead divided by operating income |
| Investment Opportunities | Opportunity | Annual Tobin Q |
| Operating cash flow | Ocf | Net cash flow from operating activities divided by total assets at the end of the year |
| Cash holdings | Cash | Monetary funds held at the end of the year divided by total assets at the end of the year |
| Growth | Growth | (Current operating income-last year’s operating income)/Last year’s operating income |
| Shareholding ratio of independent directors | Independent | Number of independent directors/number of directors |
| Regional environmental supervision | Law | The natural logarithm of the number of environment-related laws and regulations at the provincial level |
| Regional environmental governance investment | Invest | The natural logarithm of the total investment in environmental pollution control at the provincial level |
| Regional development level | Zone | In the eastern region, it is 2; in the central region, it is 1; and in the western region, it is 0 |