Research On The Path Of ESG Performance To Enterprise Value Creation

With the implementation of "Beautiful China","Carbon peak" and "carbon neutrality" in China,it not only promotes the comprehensive green transformation of economy and society,but also makes the development goal of enterprises no longer limited to the pursuit of single economic benefits,but closely combines them with social benefits.Therefore,the introduction of ESG concept provides a new perspective for enterprise value creation.Therefore,this paper introduces Fosun Pharmaceutical Group in the biomedical manufacturing industry as the case study object to explore the path of value creation and the realization of value creation under the performance of ESG.This paper first defines ESG and ESG value creation concepts,then elaborates ESG value creation theory and related value realization intermediary theory under the effects of operation,financing and governance,and summarizes the realization path diagram.Then,starting from the ESG performance of the biomedical manufacturing industry,it introduces the ESG situation of Fosun Pharmaceutical Group in "E","S" and "G" and comprehensively analyzes the four aspects.Based on the above content,this paper innovatively explores the path of enterprise value creation caused by enterprise ESG performance,mainly from the three perspectives of internal financing effect,operation effect and governance effect,to explore the value creation path of enterprises in improving operation effect and easing financing constraints.Performance analysis method and EVA valuation method are used to analyze and verify the value creation under the performance of ESG.Finally,this paper summarizes and puts forward some suggestions.The findings are as follows:(1)Fosun Pharmaceutical’s ESG performance can meet the expectations and demands of stakeholders,which shows that external investors have a high degree of recognition of corporate ESG management and improve corporate reputation;ESG information disclosure Narrows the information gap between investors and enterprises,improves the transparency of the capital market and reduces the information asymmetry.(2)Through the two mechanisms of improving corporate reputation and reducing information asymmetry,on the one hand,it stimulates staff enthusiasm,improves work efficiency,opens up the international market,increases investment in scientific research,and improves corporate operating efficiency.On the other hand,ease the financing constraints of enterprises,reduce the financing cost of enterprises and improve the financing ability.(3)Optimize the income structure and reduce the growth rate of enterprise cost and period expenses through the action mechanism of the above four value creation paths;Increase the market value of enterprises,stabilize the solvency,optimize the capital structure;Improved inventory turnover and accounts receivable turnover,promoting stable and good growth of operating capacity.In addition,EVA valuation method is used to estimate the performance of enterprises in ESG in recent years,which effectively increases the economic value through financing,governance and operation effects.Through this case,we hope to bring enlightenment to Chinese enterprises practicing ESG concept to realize value creation.We can promote the coordination between ESG performance and enterprise performance,improve ESG information disclosure system,establish ESG whole process management system,and timely adjust the enterprise development plan,so as to lay a good foundation for realizing strategic transformation and promoting value.