ESG Practices,Disclosure And Performance Analysis Of Listed Companies

ESG(Environment,Social,Governance)is an assessment system that focuses on the environmental,social and governance performance of a company.The company has incorporated ESG concepts into its strategic decisions,advocating for a way to provide longterm benefits to the company.The transition from a corporate strategy and behavioral model that simply aims at maximizing its own earnings to one that aims at society has earned the company more competitive advantage and long-term market value.An in-depth analysis of the internal mechanism of corporate ESG practices on the formation of corporate value will help companies improve their ESG decision-making framework and enhance the understanding of ESG disclosure,and is of great importance to investors in analyzing non-financial information and regulators in formulating ESG regulatory framework.The existing studies and articles focus more on the construction of ESG disclosure guidelines and the construction and optimization of the rating system,as well as ESG investment-related issues,while relatively little research has been conducted on corporate ESG practices.In practice,there are few referenceable experiences of domestic enterprises integrating ESG concept into their business operations,and the whole remains a continuation of traditional corporate social responsibility.In addition,the theoretical system and practical experience of ESG concept formed in foreign countries may not be suitable for Chinese enterprises.In this paper,we hope to study the realization path of corporate ESG practice,summarize the practical experience,and analyze the performance impact brought by ESG practice of China Shenhua,so as to provide case reference for the construction of ESG system in China,especially for corporate practice.As an A+H listed company,China Shenhua Energy Co.,Ltd.has made an early start in ESG practices and information disclosure due to the mandatory ESG disclosure principles of the Hong Kong Stock Exchange,and has integrated ESG concepts into its corporate strategy and built a relatively sound governance structure,which has been well implemented through a series of five-year plans,and its domestic and international relevant rating scores are at the leading level in the industry.Firstly,this paper summarizes the main contents of China Shenhua’s ESG report,analyzes the specific path from strategic planning to actual implementation in China Shenhua’s ESG practice,identifies the possible room for improvement,and gives corresponding suggestions for improvement.Second,through the analysis of financial performance and enterprise value indicators,this paper finds that:(1)the higher investment in the initial stage of ESG practice will lead to a decline in financial performance,while the improvement brought by ESG practice to enterprises has a certain lag,and some indicators are more following the industry trend,which is less related to the effectiveness of ESG practice;(2)China Shenhua’s ESG practice has reduced the financing cost and systemic risk of enterprises to a certain extent.(2)China Shenhua’s ESG practices reduce corporate financing costs and systemic risks to some extent,which may be due to good ESG practices and information disclosure that reduce information asymmetry and further enhance corporate value.In addition,this paper analyzes the specific case of China Shenhua Company with the aim of improving the awareness of ESG among all parties,thus increasing the awareness of planning,implementation and disclosure of ESG concept as well as further standardization of domestic ESG-related guidelines,and promoting the development of ESG concept in our country.