Research On The Impact Of Corporate ESG Performance On Its Financial Performanc

In recent years,with the rapid development of economy,environmental issues have attracted more and more attention,from the previous pursuit of economic growth to the development goal of integrating environment and society.Not only that,with the implementation of the "double carbon" goal,green and sustainable development has become a key issue;The 20 th National Congress of the Communist Party of China also stressed the importance of promoting high-quality development and modernization in which man and nature coexist in harmony.ESG covers the three dimensions of environment,society and corporate governance.It can actively respond to the needs of society and environment and build a social network between enterprises and stakeholders.It is not only conducive to the long-term development and competitive advantages of enterprises,but also can create a good business atmosphere for the society.Based on this,this paper summarizes relevant research results of ESG,mainly using theoretical analysis,case study method and quantitative analysis,focusing on the impact of ESG performance on financial performance of case enterprises.Firstly,the impact process of the three dimensions of environmental,social and corporate governance on financial performance is analyzed in detail.The research finds that ESG performance can reduce resource costs,increase sales revenue and reduce management costs mainly through green technology innovation,resource allocation optimization and governance mechanism improvement,so as to have an impact on financial performance.Then,a period of ESG performance of the case enterprise is selected to analyze the changes in financial performance,including two perspectives,one is from the profitability,growth ability,debt paying ability and operating ability of the accounting indicators,the other is from EVA.Based on the above research,suggestions are put forward from two aspects:(1)At the enterprise level,actively establish ESG concept,establish ESG management and operation mechanism,and pay attention to the trend of stakeholders;(2)At the government level:improve the ESG information disclosure system,formulate a unified ESG evaluation system and establish an ESG reward and punishment mechanism.