Research on the Influence Mechanism of Corporate ESG Performance on Financial Performance: A Case Study of LONGi Green Energy Technology

Yuanhao Mao; Xiangfeng Zeng

doi:10.54691/6yret006

Authors

Yuanhao Mao
Xiangfeng Zeng

DOI:

https://doi.org/10.54691/6yret006

Keywords:

ESG Performance; Financial Performance; LONGi Green Energy Technology; Influence Mechanism; Photovoltaic Enterprise.

Abstract

Against the backdrop of global carbon neutrality and the "Dual Carbon" strategy, how corporate ESG performance affects financial performance has become a critical issue. This paper takes LONGi Green Energy Technology, a leading photovoltaic enterprise, as a case study, and explores the influence mechanism between the two by analyzing its ESG practices and financial data from 2020 to 2024. The study finds that LONGi's outstanding ESG performance enhances financial performance through three core pathways: in the environmental (E) dimension, sustained R&D investment and resource efficiency management drive technological cost reduction and operational resilience; in the social (S) dimension, safety production and supply chain responsibility construction ensure operational stability, while significant accumulated social reputation is directly translated into a substantial reduction in financing costs; in the governance (G) dimension, a professional board structure, anti-corruption measures, and expense control capabilities provide institutional safeguards for strategy execution and risk prevention. Strategic ESG practices can effectively transform environmental and social responsibilities into competitive advantages and financial gains, offering practical insights for similar enterprises to achieve sustainable development.

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