Abstract

The Environmental, Social, and Governance (ESG) rating system has become a crucial framework for evaluating companies, but its lack of standardisation poses challenges. This study presents a case study of the Chinese dairy industry to design a standardised ESG rating system. The proposed system comprises four levelsaspect, theme, information, and indicatorswith quantitative and qualitative performance indicators assigned weights based on their significance. Publicly available data from Chinese dairy companies are analysed to calculate weighted ESG scores, allowing for clear and comparable ratings. The case study focuses on environmental impact, social responsibility, governance standards, and negative aspects, offering insights into the industry's commitment to sustainability. The designed ESG rating system aims to address the current lack of standardisation, providing a tool for fair comparisons and guiding companies toward improvement. The case study underscores the importance of ESG considerations in a sector with significant environmental and social implications, contributing to more informed and responsible decision-making.

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