Z Company’s Performance Evaluation By Introducing ESG

In the current era,the concept of "carbon neutrality"has emerged and countries around the world have introduced carbon emission reduction plans;in the Henan rainstorm,Hongxing Erke donated materials to stimulate national sentiment and was bought by consumers...With people’s concern about environmental protection and social issues,ESG,as a kind of evaluation system and investment concept that focuses on the environment,society and governance of enterprises,has frequently appeared in people’s eyes.As the ESG evaluation system of each rating agency flourishes,stakeholders are paying more and more comprehensive attention to enterprises,from the traditional financial indicators in the past to the environmental indicators,social responsibility indicators and corporate governance indicators,which can also effectively reflect the sustainability of enterprises,allowing investors to better assess the future value of enterprises and their financial status and performance.In developed countries,ESG has become a mainstream investment philosophy and investment strategy,and companies with higher ESG ratings are more favored by capital than those with lower ratings.With the in-depth promotion of China’s sustainable development concept of "innovation,coordination,green,openness and sharing",ESG has also ushered in new development opportunities in China.Taking ESG as the starting point,this paper compares relevant theories and existing domestic and international studies on ESG and corporate performance evaluation,and uses the principles of comprehensive sustainability and scientific objectivity to construct an applicable corporate performance evaluation system for Company Z from four dimensions:financial,environmental,social responsibility and corporate governance,which contains 13 sub-indicators and 48 basic indicators.In addition,this paper collects raw data through public information channels and applies the entropy value method to assign weights to the data.Finally,the corporate performance of Company Z from 2013-2018 was rated,and the results were analyzed.It is found that the integrated ESG performance score is more reflective of the sustainable operation ability of the company than the single financial performance score(F1).The integrated performance score of Company Z is not high,ranging from 0.375-0.642,which is at the average level,and reached the lowest value in 2015-2016,which is related to the overall overcapacity and market downturn of the coal industry at that time.With the supply-side structural reform,the effect of Z’s investment in environmental protection,social security,and corporate governance gradually came to the fore.However,in general,the financial performance score(F2)of the company has increased the fastest after 2015,while the environmental protection performance(E)and social responsibility performance(S)have increased to some extent,but the increase is not significant,and the company has not done enough in resource use and environmental management,which should be strengthened.the governance performance(G)of Company Z has even decreased to some extent,mainly due to the decrease in the number and size of board meetings,and should be improved and governance standardization should be strengthened.Finally,this paper presents relevant application advice.