The Impact of Media Sentiment on ESG Ratings of China's Energy Industry

Within the framework of global climate governance and sustainable development, Environmental, Social, and Governance (ESG) ratings have emerged as a critical indicator for assessing corporate sustainability. This study investigates the dynamic influence of media sentiment on ESG ratings in Chinas energy industrya three-dimensional analytical framework of media sentiment is developed to systematically examine the interplay among media discourse, public perception, and corporate sustainability practices. Using quarterly panel data from 139 A-share listed energy companies in China between 2021 and 2024this study integrates textual mining of CNKI financial press articles with ESG ratings from Huazheng Index. The empirical findings reveal the following: First, both optimistic and pessimistic media sentiment amplify fluctuations in ESG ratings, with the amplification effect being more pronounced in firms with lower information transparency. Second, ESG ratings of new energy firms exhibit greater sensitivity to media sentiment than those of traditional energy firms, underscoring the reputational vulnerability of policy-driven sectors. Third, optimistic sentiment is more likely than pessimistic sentiment to induce irrational upward shifts in ESG ratings, reflecting the asymmetric risk preferences postulated by prospect theory. This research incorporates media ecology theory into the ESG evaluation framework, addressing limitations of conventional financial-data-driven models; it also unveils the heterogeneous effects of media sentiment across different ESG dimensions, offering a theoretical foundation for differentiated governance strategies; and it extending the application frontier of big data methodologies in ESG research for the energy sector.