ESG Information Disclosure of Listed Companies Based on Entropy Weight Algorithm Under the Background of Double Carbon

Abstract

As global climate change becomes increasingly severe, environment, society, and governance (ESG) assessment systems offer new standards to examine enterprises' sustainable development behavior, performance, and potential. Listed companies' ESG information disclosure practices are causing shifts from quantity growth to quality improvement, voluntary disclosure to mandatory disclosure, and single exposure to comprehensive disclosure. Under “double carbon target” guidance, China is accelerating the construction of its ESG assessment system, whose critical link involves disclosing enterprise ESG information. Considering the strategic objectives of peak carbon dioxide emissions and carbon neutrality, this paper analyzes the progress of ESG governance in the domestic banking industry and examines the ESG information disclosure quality assessment method based on the entropy weight algorithm. Accurate, complete, and timely disclosure of information helps investors and creditors make scientific and reasonable economic decisions, reduces investment and credit risks, helps listed companies experience healthy development, and improves the market's overall operating efficiency.