Research On Impact Of Climate Change Risk On Financial Performance Of China's Listed Mining Companies

Climate change has caused a series of problems such as rising sea levels,reducing biodiversity,and frequent catastrophic climates.Climate change poses a serious threat to the survival and development of human beings.The risk of climate change is a challenge that people have to face.On the one hand,since the implementation of the Paris Agreement,the Chinese government has actively carried out climate change mitigation and adaptation actions.Enterprises are one of the important constraints of the country.The mining industry is an important focus of China's development of a low-carbon economy.The mining industry must conduct low-carbon practices to meet legal and policy requirements.On the other hand,due to the high exposure,high sensitivity and high substitution characteristics of the mining industry,the production activities of enterprises are highly susceptible to the risk of climate change,and enterprises must take corresponding measures to ensure the normal operation of production activities.Under the dual effects of external pressure and internal dynamics,actively responding to climate change risks is an inevitable choice for mining companies to seek future development.Studying the impact of climate change risks on the financial performance of the mining industry will help companies choose effective measures to meet the challenges brought about by climate change risks,seize the opportunities brought about by climate change,promote financial performance and achieve their own sustainable development.First of all,this paper reviews the relevant literature from the financial performance of mining industry,the impact of climate change risk on the industry,and the climate change risk response of enterprises.It reviews the progress and existing deficiencies of the existing literature,and provides the research for this paper.Secondly,this paper makes a comprehensive evaluation of the financial performance of listed companies in China's mining industry from the aspects of solvency,operational capability,profitability and development capability.Thirdly,this paper theoretically combs the impact mechanism of climate change risk on corporate financial performance,and discusses the ways in which climate change risk affects financial performance of enterprises from two aspects: direct impact and indirect impact.Then,this paper selects 75 listed companies in the mining industry as samples,and collects relevant data on the financial performance of the company through the database and the CSMAR database.Since climate refers to the change of climatic status over a period of time,combined with the availability of data,this paper collects and analyzes China's climate risk index and China's meteorological indicators in the main mining areas of the company for 23 years as climate change risk data.At the same time,considering that the financial performance of the company may be affected by the economic environment,this paper collects the prefecture-level economic data of the company's location through the China Urban Statistical Yearbook.By establishing a multivariate regression model of climate change risk and corporate financial performance,this paper conducts an empirical analysis of research issues,and concludes that there is a correlation between climate and mining industry financial performance,and mining companies in different industries are concerned about climate change risks.The degree of sensitivity varies,and the impact of climate change risks on the financial performance of mining companies can be positive or negative.In addition,we have verified the relationship between climate change risk and corporate financial performance through case studies.Climate change risks pose a serious challenge to Shell's future development.Shell has effectively implemented climate change risk management by adjusting its business structure,investing in new energy sources,implementing environmental information disclosure,and reducing carbon emissions.The level of financial performance continues to increase.Shell's strong financial performance is inextricably linked to its effective low-carbon strategy deployment.Shell's ideas and actions to address climate change risks have a certain reference to Chinese mining companies.Finally,this paper summarizes the impact of climate change risks on listed companies in China's mining industry.According to the positive and challenges brought about by climate change,this paper makes relevant recommendations for enterprises.Enterprises should actively respond to climate change risks,implement low-carbon strategies,invest in the development of new energy businesses,respond to changes in the energy landscape brought about by future climate risks,respond to government-sponsored emission reduction policies,and reduce corporate carbon emissions through technological innovations.Establish new production capacity and operational capabilities;actively carry out environmental practices and proactively disclose environmental information,improve the brand value of enterprises,and create new competitive advantages for enterprises.