ESG Performance and Long-Term Corporate Performance

With the global focus on climate change and sustainable development, the dual carbon targetscarbon peak and carbon neutralityhave become critical strategic objectives for many nations and corporations. As the worlds second-largest economy, Chinas efforts in economic transformation and high-quality development play an essential role in achieving these targets. In this context, Environmental, Social, and Governance (ESG) factors have become a prominent topic in academic and business discussions. With growing awareness of ESG among investors and consumers, ESG considerations are now integral to corporate strategic planning. Research has shown that companies actively engaged in ESG initiatives tend to gain better market reputations, attract more investors and consumers, thereby reducing operational risks, enhancing overall corporate value, and improving competitiveness. Through a comprehensive review of existing literature and research, we find that ESG factors have a significant impact on corporate long-term sustainable development and investor interests.