Financial Risks And Coping Strategies Of Corporate Green Investment

In September 2020,President Xi Jinping promised at the United Nations General Assembly that China will increase its nationally determined contribution,strive to peak carbon dioxide emissions by 2030,and strive to achieve carbon neutrality by2060.As the main part of economic behavior,enterprises have a major responsibility for Chinese environmental pollution problems.Under the policy background of "carbon neutrality" and “emission peak”,which pursues a win-win situation between economic and environmental benefits,enterprises,as microeconomic entities,should practice green development concept,and assume the social responsibility for realizing the green development and efficiency of the national economy.Green investment is an important way for enterprises to transform into green and low-carbon development.Green investment has the characteristics of continuity and periodicity.For enterprises,it means high capital investment and great uncertainty in the process of investing.The financial risks involved in all aspects of enterprise operations.Therefore,the implementation characteristics and financial risk management of enterprises’ green investment have high research value.This paper takes Huadian Power International Co.,Ltd.,which is a leader in green investment,as an example,and analyzes its green investment process and financial risk response strategies,which can provide a reference for high-polluting enterprises that urgently need large-scale green investment.Through case study,this paper finds that in the process of green investment,enterprises are faced with great dept repayment pressure,asset transformation risk,high-tech equipment operation and maintenance risk,and green operational risks.Huadian Power International Co.,Ltd.formulated an overall risk response strategy,and then formulated corresponding control measures for each risk,including leveraging green advantages,alleviating financial pressure,recycling scrapped assets,improving asset management,optimizing employee structure,and improving equipment operation and maintenance,strengthening comprehensive management and dealing with green operational risks and so on.Through these measures,Huadian Power International Co.,Ltd.have better managed the financial risks faced in green investment.Through case studies,this paper also obtains some inspirations for green investment under "carbon neutrality" and “emission peak” policies.Green transformation is not only the responsibility of enterprises,but also requires the whole society to share costs and risks while share benefits and results.Therefore,different entities such as enterprises,social capital,and the government should assume their own responsibilities to realize the transformation of the whole society and work together.Only through continuous green investment by enterprises and strong support from the society and the government can we complete the "carbon neutrality" and“emission peak” goals as soon as possible in the whole society,build a green industrial structure,and realize the sustainable and coordinated development of society,environment and economy.