Study on the Relationship between ESG Performance and Corporate Performance in the Context of Dual Carbon - Based on the Perspective of Corporate Innovation

Abstract

The relationship between environmental, social and governance (ESG) performance and corporate performance has received increasing attention under the dual-carbon goal. Taking corporate innovation capability as the analyzing perspective, this study explores the interaction mechanism between ESG performance, corporate innovation capability and corporate performance. By analyzing the data of listed companies in Shanghai and Shenzhen in the past ten years, this paper empirically examines the direct impact of ESG performance on corporate performance and the indirect impact through corporate innovation capability by using multiple regression model and mediation effect model. It is found that good ESG performance not only directly promotes corporate performance, but also indirectly improves corporate performance through enhancing corporate innovation capability. This finding demonstrates the importance of optimizing ESG performance and enhancing corporate innovation capacity to promote high-quality corporate development in a dual-carbon context. This study provides theoretical basis and practical guidance for enterprises to realize win-win situation of economic benefits and social responsibility while pursuing sustainable development.