Research on Enterprise Value Mechanism of Environment-protection Industry Based on ESG Performance

With the concept of sustainable development becoming increasingly ingrained in society, the performance of enterprises in environmental, social, and governance (ESG) aspects has garnered societal attention. This paper takes a company in the surveying and mapping industry as a sample and employs principal component analysis and regression analysis to empirically test the impact of ESG performance on enterprise value and the mechanism by which innovative technology plays a moderating role. Through the regression analysis, there has three conclusions: First, corporate ESG performance exhibits a positive correlation with corporate profits, and better ESG performance is associated with increased profits in subsequent operating cycles.; Secondly, technological innovation has a positive promotional effect on corporate profits; Lastly, technological innovation plays a significantly negative attenuating role under the positive effect of ESG performance on corporate profits. These three conclusions offer insights to managers of environmental protection enterprises: managing the company's investment in technology wisely and maximizing financing while reducing direct R&D expenditure may yield better results for profit acquisition. This allows managers of environmental protection enterprises to more clearly understand the mechanism by which technological innovation acts between ESG performance and corporate profits, and to formulate better management strategies based on these conclusions.