Research On the Impact of ESG Performance on Operating Capacity in Environmental Protection Industry

Abstract

With the rise of ESG concepts as a hot topic, the topic of corporate Environment. Social. Government(ESG)governance has attracted the attention of scholars. However, there is a lack of research on the relationship between corporate ESG governance and operational capabilities. This article explores the impact and mechanism of ESG performance of listed companies in the environmental protection field on their operational capabilities. Based on quarterly data from 2010 to 2023, this article uses the Topsis model and linear regression analysis to do empirical analysis. Research shows that the comprehensive ESG performance of environmental protection enterprises is significantly positively correlated with their operational capabilities. Enterprises with excellent ESG can improve operational efficiency by effectively reducing sales costs. The study emphasizes the role of ESG in corporate strategy, information transparency, and financing simplification, and suggests that companies strengthen the integration of ESG strategies into their business, transparent disclosure, and internal and external supervision. This article enriches the research on the operational efficiency of ESG in environmental protection enterprises and has practical guidance value for ESG application, policy formulation, and corporate strategy.