Research On Strategic Performance Evaluation Of Environmental Investment Of Baosteel

In recent years,with the introduction of relevant national environmental protection laws and regulations,the environmental pressure of enterprises is increasing,but most enterprises generally believe that environmental governance will increase costs and reduce performance,so enterprises are in a dilemma.Most enterprises’ approach is to passively abide by environmental regulations and fail to regard actively dealing with environmental problems as a strategy to establish competitive advantage.So how can enterprises not only comply with environmental laws and regulations,but also actively carry out environmental management,and gain competitive advantage from it?In 2010,Baosteel put forward environmental management from the strategic level and continuously increased environmental investment.Therefore,this paper takes Baosteel as the research object to study how to carry out the transformation of environmental investment strategy under the double pressures of tightening environmental policy and declining economic situation?Does the transformation lead to the improvement of environment and financial performance,so as to maintain the competitive advantage in the industry?The research in this paper is helpful for the decision-makers of Baosteel to decide the future strategic direction,and also provides enlightenment and reference for other pollution enterprises to formulate development strategies.Based on sustainable strategy theory,corporate social responsibility theory,circular economy theory and environmental strategy theory,this paper first introduces the current situation of Baosteel’s operation,corporate governance structure and the implementation of environmental responsibility,focusing on the analysis of Baosteel’s economic situation and changes in environmental regulations from 2006 to 2017.How to change from passive"energy conservation and emission reduction" to at the strategic level,the paper puts forward the process and motivation of "environment-friendly" strategic transformation.Then 10 input indexes of human resources,capital,raw materials and energy,8 expected output indexes and 5 unexpected output indexes are established as the primary indexes of input and output of DEA analysis decision-making unit.Firstly,PCA method is used to integrate and simplify the input-output indexes,and then DEA method is used to evaluate 12 decision-making units of Baosteel from 2006 to 2017,to transfer the environmental investment strategy The environmental performance of Masteel is evaluated,and the comprehensive technical efficiency,pure technical efficiency and scale efficiency are further analyzed.Then,using the financial index method,through the horizontal comparison of single index,comprehensive index and Maanshan Iron and Steel Co.,Ltd.,the paper makes a systematic analysis of the financial performance of the transformation of environmental investment from passive response to strategic foresight.The results show that the transformation of Baosteel’s environmental investment strategy improves the utilization rate of resources and energy,improves the output level of scientific and technological achievements,expands sales,delays the decline of profits,improves the ability of operation,debt repayment and development,and maintains its competitive advantage in the industry.In a word,Baosteel actively responds to the changes of macro environment,industrial environment and environmental policies,pays attention to environmental issues from the strategic level at the right time,and makes its environmental investment strategy change from passive response to strategic perspective,which not only brings the double improvement of environmental and financial performance,but also continues to maintain the competitive advantage of the industry and promotes the long-term sustainable development of Baosteel.