An Empirical Study on ESG Evaluation and Financial Performance of Chinese Listed Energy Companies

ESG is an important value-based assessment factor that covers disclosure of information across three dimensions of environment, society and corporate governance. It can be used to assess the company’s management capacity and sustainable development level, and support risk management. As an environmentally sensitive industry, the energy industry has high environmental risks and a more stringent supervision environment. ESG evaluation has a deeper impact on the energy industry. The timing of ESG evaluation in China is relatively late. There are few studies on the correlation between ESG and listed companies’ financial impact. Based on the Development Status of energy industry in China, this paper studied the ESG correlation and financial performance of listed energy enterprises in A-share from aspects of theoretical analysis and panel regression. The results show that good ESG evaluation can promote enterprise’s financial performance. Enterprises should pay attention to ESG evaluation, investors should incorporate ESG evaluation into investment decisions, regulatory authorities should improve ESG policies, and the media should strengthen supervision.