Research On The Impact Of Longi Green Energy ESG Practices On Corporate Performance

Recently,corporate social responsibility has won social consensus with the popularization of sustainable development.Investors have begun to pay attention to implementing corporate social responsibility and derive responsible investment that comprehensively considers the financial and ESG performance of the invested enterprises.As ESG concepts gradually take root,all walks of life have begun actively engaging in ESG practices.Among them,as a key development field in the national strategic plan:the photovoltaic industry carries a unique development mission.Under the background of "carbon peaking" and "carbon neutrality," to adapt to the layout adjustment of China’s energy industry structure,vigorously developing new energy,such as photovoltaics,is imperative.ESG practices in the PV industry are the only way for the PV industry to achieve the mission of the clean energy industry.So for the enterprises themselves,whether ESG practices are conducive to corporate performance and the specific path of ESG practice to performance,it is of great significance for PV companies to practice ESG.This paper attempts to explore the impact of ESG practices on corporate performance through case studies and analyze their impact pathways.Based on the study of relevant literature,this paper explores the impact of ESG practices on the market performance and financial performance of enterprises based on LONGi Green Energy as the primary research case.Then it analyzes the impact of ESG practices on the overall performance of enterprises.On the one hand,this paper explores the impact of ESG practice on corporate market performance through the event research method and BHAR analysis method combined with the SSE A-share index.On the other hand,select the relevant financial data of the past five years to conduct a longitudinal analysis from four perspectives:profitability,solvency,operating capability,and growth capability,to explore the impact of ESG practices on corporate financial performance.At the same time,similar enterprises in the same industry,Tongwei Co.,Ltd.and Zhonghuan Co.,Ltd.,were selected to conduct a horizontal financial performance comparison analysis with LONGi Green Energy.Select representative indicators to analyze the common performance and differential performance of the financial performance of the three companies and explore the transformation path from ESG practice to corporate performance.This paper explores the conversion path of ESG practice to enterprise performance.Based on the case analysis,this paper concludes that good ESG practices will positively impact the financial performance of enterprise market performance,and corporate ESG practice can improve corporate performance by reducing financing costs,improving corporate efficiency,and reducing corporate risks.The research contributions of this paper are:(1)This paper enriches the research on the impact of ESG practice on enterprise performance in the form of cases,helps enterprises to effectively integrate index disclosure into the company’s management and operation,gives play to the two-way role of ESG evaluation system for enterprises,and realizes the unity of enterprise business value and social value.(2)This paper takes PV industry enterprises as the case study object to discuss ESG practices in the PV industry,which can supplement the literature in related fields and enrich the relevant case studies to provide references for PV enterprises to improve their value creation ability and performance.