Research On The Impact Of Baosteel's Green Transformation On Financial Performanc

In the report of the 20 th National Congress of the Communist Party of China in 2022,it was clearly proposed to accelerate the green transformation of development methods,implement comprehensive energy-saving strategies,and develop green and low-carbon industries.However,as the steel industry is a highly polluting industry,the early large-scale non economic development mode led to the generation of a large number of pollutants,triggering the contradiction between economic development and environmental protection,making it difficult for the traditional operation mode of the steel industry to adapt to the current "Jinshan Yinshan" development strategy.In addition,the country has also proposed supply side reform,established a green industrial chain,and promoted the upgrading of industrial structure.It is against this background that the green transformation of the steel industry brooks no delay.To achieve green transformation,enterprises must invest huge environmental costs,which will inevitably have a certain impact on their financial performance.Therefore,it is of great significance to study the impact of green transformation on the financial performance of Chinese steel enterprises.Based on existing research results and the actual situation of Baosteel Co.,Ltd.,this article takes "What kind of impact does green transformation have on corporate financial performance" as the core research question,and further answers the question of "how green transformation affects corporate financial performance".This article reviews previous literature to understand the research status in this field.Based on relevant concepts and theories,a systematic analysis is conducted on the impact of Baosteel’s green transformation on financial performance.Firstly,collect and organize financial data related to Baosteel Co.,Ltd.,use the financial indicator method to analyze and evaluate its financial performance in the early and later stages of green transformation,and compare it with the industry average.Finally,draw a preliminary conclusion that Baosteel’s green transformation has a positive impact on its financial performance.Secondly,an OLS model was constructed using Baosteel’s data,and the positive impact of green transformation on financial performance was further verified through empirical analysis.Finally,explore how green transformation of enterprises can improve financial performance from four aspects: green innovation,resource balancing,government subsidies,and corporate social responsibility.Through the above research,the following conclusions can be drawn:(1)Baosteel’s green transformation has promoted the improvement of corporate financial performance;(2)The implementation of green transformation has an impact on the financial performance of enterprises,mainly manifested as: promoting enterprises to increase green innovation efforts,developing green environmental protection technologies,and reducing production costs by improving resource utilization;Promote the balanced development of enterprise resources,establish a scientific development and resource perspective,reduce resource consumption,improve the comprehensive utilization rate of resources,and bring huge low-cost advantages;Actively respond to government policies and assume environmental responsibility,thereby obtaining government subsidies,increasing the disposable funds and current profits of enterprises,and increasing their profit opportunities;Actively fulfilling corporate social responsibility,promoting enterprises to attract consumers’ attention,thereby establishing a green brand image,enhancing enterprise awareness and gaining market recognition,and promoting sales revenue growth.Finally,this article draws the following three inspirations:(1)In the process of green transformation,enterprises should adhere to technological innovation,develop energy-saving and clean technologies,improve their strategic cooperation capabilities,and make energy-saving,emission reduction,and environmental protection their long-term development strategies;(2)Enterprises implementing green transformation should establish an environmental performance evaluation mechanism to enhance the awareness of green environmental protection among management personnel and employees;(3)Enterprises’ green transformation should take the initiative to assume social responsibility,improve the transparency of environmental protection information,strengthen the shaping of green reputation,and enhance their own influence.