Research on ESG performance in Chinese listed firms: Perspective of economic policy uncertainty

Abstract

In the context of the rapid transformation of the global economy, the impact of economic policy uncertainty (EPU) has penetrated into all areas of production and life. As an important indicator system for measuring non-financial performance of firms, ESG has emerged in recent years. From the perspective of economic policy uncertainty, it is significant to understand the development and changes of ESG in Chinese listed firms correctly for realizing high-quality development. Using qualitative research method and combining with practical research experience, this paper discusses the impact of EPU on Chinese listed firms’ ESG performance through ownership. Specifically, we develop analysis from there aspects, including Relationship between social and economic benefits, Employee Benefits and Corporate Governance and ESG Reaction Mechanism in the Context of Uncertainty. We find that under the impact of uncertainty, it is necessary to deeply understand the actual performance of ESG in enterprises with different ownership and the internal motivation of ESG investment, which could be play a vital role in achieving China's “dual carbon” strategic goals and effectively promote sustainable and high-quality development.