The Impact of ESG Factors on Industries: The Case of China

The ESG factors consideration has shown an upward trend since half century ago, as well as in China since the 21st century. The Chinese governance has required institutions and companies include ESG scores in the company’s reports and make information of corporations being transparent to the public. This paper analyzes which industry or market are sensitive and will be influenced by considering ESG factors in the near future based in China. By means of collecting relative research theories and conclusions, this paper presents three industries that are possible to be impacted by ESG. Technically, there are numerous industries would be affected, but this paper focuses on three of the most well-known and sensitive markets-financial market, sinful market, and green industries. This paper is able to help investors or individuals who wants to invest and even the governance to recognize the future tendencies of several markets and it’s useful to aware in advance for investment worthful industries.