Research On Economic Performance Evaluation Of Electric Power Enterprises Based On ESG

Nowadays,many listed companies in the world are shifting from short-term profit maximization goals to long-term sustainable environmental,social and governance(ESG) goals.There is a growing awareness that ESG can affect a company's financial performance and profitability.Electric power industry is the public utilities and basic industry of China's social and economic development.The huge energy demand brought by the rapid economic growth of China leads to the increasingly prominent contradiction between the rapid development of electric power industry and environmental protection.Traditional enterprise performance evaluation methods consider more financial factors,less environmental,social,corporate governance and other factors,especially the lack of consideration of environmental factors.Based on the background of electric power enterprises in China,this paper systematically studies the correlation between ESG evaluation and economic performance of electric power enterprises in China from theoretical analysis and empirical test.The question of "how does ESG affect financial performance" has not been thoroughly discussed and studied in China.This paper first reviews related research literature at home and abroad,the secondly ESG evaluation in our country and the electric power enterprise economic performance analyzes theoretical basis and the electric power enterprise economic horn line of correlation analysis,this paper use 2017 China resources power holdings co.,LTD.,as samples,based on state,stress,and hierarchical analysis response(PSR-AHP)index classification and the weight ratio of methods to build China ESG rating system of listed companies.Based on the panel regression analysis of the ESG evaluation index and financial index(ROCE and Tobin's Q)data of 20 Chinese electric power enterprises from 2008 to 2017,it is concluded that the correlation coefficient between the ESG evaluation index and the economic performance of Chinese electric power enterprises is positive.The empirical results show that the ESG performance of power companies has a significant positive impact on economic performance,excellent ESG index is beneficial to the development of power generation enterprises,enterprises and investors focused on generating the ESG performance of the enterprise,make regulators can introduce relevant policies and regulations,to help decision makers to make appropriate investment options.