Research on Credit Risk Identification and Management Strategy of Real Estate Supply Chain from the Perspective of Sustainable Development

The real estate sector plays a pivotal role in driving economic growth. However, it faces significant challenges related to credit risk and sustainable supply chain practices. The management of credit risk and the integration of Environmental, Social, and Governance (ESG) factors into credit risk assessment have garnered increasing attention. This paper investigates the influence of sustainability practices within the real estate supply chain on credit risk management, focusing on the case study of China Evergrande Group. Through an analysis of Evergrande Group's financial reports and relevant policy changes via literature review and case study methodology, this research delves into the underlying causes of its credit risk as well as its repercussions on the supply chain. The findings indicate that Evergrande Group's high leverage coupled with an aggressive debt expansion strategy has resulted in a heightened accumulation of credit risk amid evolving policies and market conditions. Consequently, it is recommended that real estate enterprises enhance their mechanisms for assessing supply chain-related credit risks, establish early warning systems for potential credit issues, promote information sharing among stakeholders, and refine their contractual agreements and guarantee frameworks to mitigate credit risks while promoting sustainable development within their supply chains