A Review of the Evaluation and Impact of ESG Information Disclosure

Yuze Li

doi:10.54097/dm6mf019

Authors

Yuze Li

DOI:

https://doi.org/10.54097/dm6mf019

Keywords:

ESG disclosure, corporate performance, transparency, sustainable development.

Abstract

This paper examines the disclosure performance of ESG (environmental, social, and governance) practices in enterprises, exploring their impact on corporate market valuation, investor trust, risk management, and financial performance. It delves into the transparency, quality, and consistency of ESG information and how these factors influence corporate outcomes. The paper begins by summarizing the current evaluation criteria for ESG information disclosure, offering an overview of existing standards and practices. It then investigates the key factors that affect ESG disclosure, including the policy environment, corporate characteristics, and organizational structure. Through this analysis, the paper highlights the positive effects of high-level ESG disclosure on a company's market recognition, investment attractiveness, and long-term sustainable development. Companies that adopt transparent and consistent ESG disclosure practices are better positioned to enhance investor confidence, manage risks more effectively, and achieve stronger financial performance. The findings from this study offer valuable insights into the importance of robust ESG disclosure and provide a reference for optimizing the standardization of ESG reporting practices in the future.

Downloads

Download data is not yet available.

References

[1] China Central Depository & Clearing Co., Ltd., & International Capital Market Association (ICMA). (2024). China ESG practices white paper.

[2] Xinhua News. (2023, December 15). China advances unified ESG standards framework, plans to implement full mandatory disclosure by 2030. Xinhua News.

[3] Sustainable Brand. "China's ESG funds are growing rapidly, and green bonds support a low-carbon economy"

[4] Hossain, D. M., & Khatun, R. (2020). The impact of economic policy uncertainty on corporate social responsibility: Evidence from developing countries. Social Responsibility Journal, 16 (3), 343-357.

[5] Lee, K. H., & Klassen, R. D. (2016). Sustainable development and corporate social responsibility: A review of the literature. Journal of Cleaner Production, 112, 1734-1742.

[6] Wang, Z., & Li, Y. (2020). The role of government subsidies in corporate environmental responsibility: Evidence from China. Sustainability, 12 (4), 1571.

[7] Tian, F., & Sun, Z. (2021). The role of artificial intelligence in ESG reporting: Opportunities and challenges. Sustainability, 13 (2), 564-581.

[8] Sinopec 2022 Corporate Social Responsibility Report

[9] Mindray Medical's 2023 Sustainability Report

[10] Zhou Dawei (2020). Research on the Status Quo and Countermeasures of Environmental Responsibility Fulfillment of Mining Enterprises in China. Environment and Sustainable Development, 45 (1), 15-20.

[11] Chen, H., & Li, Z. (2021). The impact of ESG disclosure on firm financial performance: Evidence from emerging markets. Journal of Business Research, 124, 524-532.

[12] Wang, X., & Zhang, Y. (2022). ESG disclosure and stock price crash risk: A moderating effect of corporate governance. Financial Management Review, 30 (3), 345-367.

[13] Li, S., & Zhang, Y. (2019). Environmental, social and governance disclosure, financial performance, and risk management. Corporate Social Responsibility and Environmental Management, 26 (3), 629-641.

[14] Hu, Y., & Li, W. (2020). Corporate social responsibility, reputation, and firm performance: Evidence from China. Sustainability, 12 (4), 1596.

[15] Zhang, H., & Yang, Z. (2021). The effect of corporate governance on the relationship between ESG disclosure and firm risk. Journal of Business Research, 122, 315-322.