The Economic Consequences Of ESG Information Disclosure

The focus of ESG is on environmental,social,and corporate governance,a novel investment concept and enterprise assessment criterion that concentrates on financial success.ESG information disclosure is highly consistent with the goal of implementing the new development concept in China,so it is increasingly highly valued by regulatory authorities,listed companies,investment institutions and other parties,and stakeholders’ requirements for timely ESG information disclosure is also increasingly strong.Internationally,ESG information disclosure has become a new development trend and trend.Our government departments and regulators are also vigorously promoting relevant construction.Some listed companies have begun to practice ESG-related aspects.However,many enterprises are full of yearning for ESG investment,but they also have doubts.They do not know what economic consequences the disclosure of ESG information will bring to enterprises.They are mainly concerned that the disclosure of ESG information will affect the performance and economic value of enterprises.What economic repercussions will the disclosure of ESG information have on enterprises’ performance and value? This is the primary worry.This is also the purpose of this study.This paper selects CNPC as the case object to study the financial repercussions of divulging ESG information.The environmental repercussions of the oil and gas extraction sector cannot be overstated.The concept of sustainable development has made the disclosure of oil enterprises’ information more appealing.CNPC,an energy enterprise in China,has made considerable strides in the disclosure of ESG information,a feat that merits thorough examination.This paper will provide a synopsis of the channels and contents of CNPC ESG information disclosure,as well as an assessment of its disclosure.The study found that CNPC ESG information disclosure has problems such as incomplete disclosure information,discontinuous data,lack of comparability,lack of quantitative indicators,lack of forward-looking and lack of supporting data.Then we give reasonable suggestions according to the problems in its information disclosure.At the same time,it focuses on the economic consequences of ESG information disclosure from the perspective of enterprise cost and enterprise performance,and finally uses the event study method to study the economic consequences of ESG information disclosure.The disclosure of ESG information,this study discovered,has a beneficial effect on diminishing the company’s financing restrictions,cutting down its capital outlays,and enhancing its performance.Although it may cause a short-term financial strain,the company’s long-term growth is generally enhanced by the positive market feedback it can bring.This article is a case study.It is my wish that,through the case,all stakeholders will be attentive to the enterprise’s ESG data and bolster the enterprise’s cognizance of ESG disclosure.