ESG greenwashing behaviour in the electric vehicle supply chain: Insights from evolutionary game theory

This study explores the governance of greenwashing behaviour within the Environmental, Social, and Governance (ESG) framework of the New Energy Vehicle (NEV) supply chain. Employing an evolutionary game theory model, we examine the strategic interactions between NEV Components Suppliers (NEVSs), NEV Manufacturers (NEVMs), and Government Regulatory Agencies (GRAs). We derive the conditions for evolutionarily stable strategies (ESS) and conduct sensitivity analysis to assess the impact of key factors on the evolution of optimal strategies. Our findings reveal the dynamic changes in ESG practices and greenwashing of supply chain enterprises under different market and regulatory environments. The results demonstrate that ESG practices in the supply chain exhibit distinct phased characteristics, transitioning from greenwashing behaviour in the initial stages to proactive ESG practices in the maturity stage. This research highlights the significant influence of market forces on companies' ESG strategic choices, suggesting that the government should implement appropriate regulatory and incentive strategies at different stages to guide enterprises from greenwashing towards authentic ESG practices. This study provides theoretical insights and practical guidance for policymakers and corporate strategists to promote sustainable development in the NEV industry.