Research On The Impact Of ESG On Financial Performance Of Energy Enterprises

In recent years,the rise of ESG concept has attracted extensive attention of scholars at home and abroad.Domestic and foreign enterprises realize that the implementation of relevant behaviors of environmental protection,social responsibility and corporate governance is conducive to their own sustainable development.In the past few decades,China’s energy industry has experienced rapid development.Enterprises not only achieve high economic benefits,but also bring environmental pollution.Facing the "double carbon" goal,many energy enterprises began to transform to a clean and low-carbon development mode.Enterprises deeply realize that applying ESG management to productive practice is of great significance to sustainable development.This paper comprehensively uses the methods of literature research,empirical research and case study to analyze the impact of ESG on financial performance of China’s energy enterprises.Firstly,taking 120 listed energy companies in China from 2015 to 2019 as samples,this paper uses the data disclosed by corporate financial reports and Bloomberg ESG scores to conduct multiple regression analysis of panel data based on two-stage least squares(2SLS)method.In addition,this paper analyzes the heterogeneity,and divides the samples into two groups: state-controlled and non-state-controlled enterprises,new energy and traditional energy enterprises.The regression results show that the ESG of energy enterprises has a significant positive impact on financial performance,and there is a time lag effect;ESG of state-controlled enterprises has a faster impact on financial performance;The performance of ESG of new energy enterprises on financial performance also has time lag,which is not significant for traditional energy enterprises.This paper further studies the impact of the three dimensions of ESG on financial performance.The results show that good environmental performance will promote the improvement of financial performance.Comprehensive empirical results show that ESG has a significant positive impact on the financial performance,but this impact has a certain time lag.Improving the performance level of ESG is conducive to sustainable development.Secondly,by comparing the reports of ESG information disclosure of well-known energy enterprises at home and abroad,this paper analyzes the similarities and differences of information disclosure,and finds the advantages and disadvantages of ESG information disclosure of Chinese enterprises.The advantages lie in the gradual maturity of disclosure quality,ESG management practice and information disclosure based on national conditions.The shortcomings lie in the lack of completeness of ESG report,lack of unified preparation standard,imperfect disclosure content,shallow impact on the improvement of information disclosure,etc.Finally,according to the impact of ESG on enterprise financial performance,aiming at the problems existing in the ESG information disclosure report of energy enterprises,this paper puts forward relevant suggestions to enterprise managers,regulators and investors,so as to improve the standardization and disclosure quality of ESG information disclosure of energy enterprises.