The Impact of ESG Practice Indicators on Enterprise Development and Value

Abstract

In recent years, the concept of ESG has aroused the attention of all walks of life. Coupled with the tendency of policy in the field of carbon peak and carbon neutrality, ESG disclosure of enterprises has a significant impact on enterprise development. In this paper, the Wind ESG rating index is used, and five automobile companies, BYD, Geely Automobile, Dongfeng Automobile, Changan Automobile and SAIC Motor, are selected as representatives. The impact of ESG performance on enterprise value is tested by case analysis and Wind ESG disclosure rating. It is found that good corporate ESG performance can improve corporate strength and value from environmental protection, corporate social governance and other aspects. The analysis shows that better ESG performance can affect the market value by adjusting accounting profit to reduce carbon emissions and so on, thereby improving the enterprise value. Further analysis shows that the index disclosed in the evaluation of ESG indicators of enterprises can also have a reverse effect on enterprises, and thus significantly improve the long-term ESG performance of enterprises. The results of this study are helpful for investors to better understand the development prospects of enterprises. At the same time, they are helpful for enterprises to promote ESG practice and disclosure, further promote the development of enterprises, improve performance and market competitiveness, and promote enterprises to embark on the path of sustainable development.