Research on the Impact of ESG Rating on Enterprise Value in the New Energy Vehicle Industry Based on BYD

Abstract

With the impact of "dual carbon" such as carbon peaking and carbon neutrality, investors have gradually taken the non-financial information and sustainable development of enterprises as part of their investment reference. ESG rating evaluates enterprises from three aspects: environment, social responsibility, and corporate governance. At the environmental level, BYD strictly controls the emission of various wastes, greatly reduces carbon dioxide emissions, and has achieved good results in international evaluations. In terms of society, we have built a variety of employment channels, established employment platforms, absorbed local employees, and promoted social and economic development. At the governance level, the company attaches importance to sustainable development work and continuously improves the company's sustainable development communication mechanism. When the impact of BYD Group's ESG rating performance on the book value of the company, this paper concludes that the company's economic added value is positive and generally upward through the comparative analysis of basic financial indicators EVA analysis and return on net assets. In the impact of ESG rating performance on market value, the event research method is used to study and analyze BYD's ESG rating rate of return (AR) and cumulative abnormal rate of return (CAR). The results show that the year-on-year and cross-level upgrading of ESG ratings can help enterprises achieve sustained growth in economic added value.