Value Evaluation Of Fine Chemical Enterprises Based On ESG

Environmental,social and governance is a vision of sustainable development that aims to bring people and nature together in harmony.Globally,policy makers are now working together to accelerate the development of the ESG concept,which is in line with the 14 th Five-Year Plan and the 2035 Development Vision to "promote green development and harmony with nature".The concept of ESG development is in line with the concept of "promoting green development and harmonious coexistence between human beings and nature" as stated in the 14 th Five-Year Plan and 2035 Development Vision.The fine chemical industry consumes a lot of energy and pollutes a lot,and some enterprises are not proactive enough in taking social responsibility,which to a certain extent affects the long-term interests of enterprises and the sustainable development of the social environment.At the same time,most chemical companies are assessed in market transactions only on the basis of financial indicators,resulting in chemical companies not paying sufficient attention to ESG factors.Therefore,this paper introduces ESG factors to assess the value of fine chemical enterprises and demonstrates that ESG performance affects enterprise value by influencing the discount rate,helping to evaluate the reasonableness of the current value management of enterprises and drawing the attention of fine chemical enterprises to environmental protection and social responsibility.Through literature reading,model construction and case studies,this paper reviews the factors influencing the value of chemical enterprises,assessment methods and ESG-related theories in recent years,and analyses the current development of the chemical industry.After demonstrating the necessity of introducing ESG factors into value assessment,this paper adopts the Bloomberg ESG index and EVA pricing model as the basic model for enterprise value assessment,and uses the discount rate as an intermediary,importing ESG factors into the evaluation model,using the univariate method to make corrections,deriving the correlation function between the revised discount rate and ESG score,and using ESG factors to estimate relevant parameters,finally applying the enterprise value assessment model with the introduction of ESG to Xinhecheng Company as a case object,and comparing the calculated results with the conventional valuation results to verify its accuracy.It was found that ESG can enhance the internal value-added capability of a company,thus enabling it to achieve long-term,stable returns.For a defined cost of capital weighting,the higher the ESG index,the smaller its adjusted discount rate,and the higher the value of the company calculated using the valuation model.In the empirical analysis,the inclusion of ESG in the evaluation of a company’s value allows for a more accurate assessment of the results and thus a better evaluation of the company’s profitability and value added.