ESG Strategies and Practices of Chinese Listed Companies

Abstract

In the wake of the global outbreak of the new coronavirus, many organizations have been subjected to stress tests, including companies and some contractual organizations. This, coupled with challenges ranging from economic inequality to racial inequality to climate change and those already closely tied to business, has combined to create an extraordinary test for business. Capital market investors are also re-examining traditional growth models and placing greater emphasis on sustainability, with a new surge in global ESG investment and practice. China’s economy has benefited from a combination of sustainable development strategies and high-quality development strategies, making it the world’s first major economy to recover from the epidemic. The government has introduced a series of initiatives on carbon emissions, anti-monopoly, and corporate governance to positively transform to a low-carbon economy. When asked about how to handle the deep-rooted problems facing society, companies often say that they cannot afford to invest in environmental protection, high employee compensation, or other social issues because they must return sufficient profits to shareholders. To address this issue, this paper will use the ROSI model developed by the Stern Center for Sustainable Business (CSB) to embed ESG strategies into corporate development strategies to better integrate, track report on the financial performance of companies owing the implementation of ESG strategies, which will improve management decisions related to ESG and sustainable practices and provide investors with more actionable information.