Impact Of Climate Change On The Financial Performance Of A-share Listed Companies In The Energy Industry

The energy industry plays an important role in economic development.As the issue of climate change becomes more and more obvious,listed energy companies are gradually affected.The first is physical impact.Climate change will affect the core assets,supply chains,and infrastructure of listed energy companies.Second,countries are gradually taking proactive measures from the perspective of enhancing national climate competitiveness and formulating climate change policies to respond.Under these circumstances,listed energy companies face pressure from domestic and foreign policies and regulations for the development of low-carbon economies.Finally,under the influence of stakeholders,the pressure of listed energy companies comes from investors’ increasing risk of climate change.Concern,on the other hand,comes from the contradiction between consumers’ increasing demand for low-carbon products and insufficient effective supply.It can be seen that responding to climate change is no longer an optional option for listed energy companies,but an important factor that determines the company’s future survival and development.First of all,this article comprehensively expounds the relevant concepts of climate change,energy and energy industry,and financial performance,and then combs the factors that affect the financial performance of listed energy companies,and provides ideas for empirical research methods for subsequent research.This article draws on domestic and foreign scholars’ research on the impact of climate change on the energy industry,and introduces meteorological conditions as specific measures of climate change.Then,the sustainable development theory and stakeholder theory are used to lay the relevant theoretical foundation.Finally,the mechanism of the impact of climate change on the financial performance of listed energy companies is discussed from two perspectives: direct impact and indirect impact.Secondly,based on the theoretical foundation previously laid out,this paper proposes hypotheses and selects 75 energy companies listed on the A-share market in my country as research objects,collecting 24 years of financial data from these companies from 1993 to 2017 from the wind database.Climate change refers to the change of climate state over a period of time.This article collects and organizes the meteorological index data of the locations of energy listed companies during the past 24 years.Through descriptive statistics,correlation analysis,multicollinearity test,fixed effect regression and robustness test,it is found that the average temperature,average relative humidity and financial performance indicators of the company’s location are significantly negatively correlated.Furthermore,this article uses Sinopec as an example to conduct a case study to further verify the impact of climate change on the financial performance of listed energy companies.It was found that Sinopec actively responded to the adverse effects of climate change by adopting measures such as adjusting business structure,developing alternative energy sources,and managing greenhouse gas emissions,which would help improve the company’s financial performance in the long run.Finally,this article summarizes the impact of climate change on the financial performance of listed energy companies.Although climate change poses challenges to listed energy companies,it is also an opportunity in the long run.Therefore,some suggestions have been made from the perspective of the government and the company itself.