Research on the Applicability of ESG Ratings in Different Industries and Their Impact on Corporate Performance

DOI

10.2991/978-94-6463-770-0_40How to use a DOI?

Keywords

ESG ratings; Corporate performance; Different industries; Applicability; Impact mechanism

Abstract

Against the backdrop of global economic sustainable development, ESG (Environmental, Social, and Governance) assessment has emerged as a crucial indicator for measuring a company’s non-financial performance and sustainable development capabilities. Through empirical analysis, this study delves deep into the applicability of ESG ratings in various industries and their impact on corporate performance. The research selects representative industries such as food, textiles, construction, oil and gas, and real estate, and collects ESG rating data and performance indicators of relevant companies. Using a multiple linear regression model, it analyzes the impact of the comprehensive ESG score and its dimensions (environmental, social, and governance) on corporate performance, and conducts a differential analysis across different industries. The study finds that there is a significant positive correlation between ESG ratings and corporate performance, and there are obvious differences in the characteristics of ESG ratings and their impact mechanisms on corporate performance among different industries. For example, the food industry places a higher weight on the environmental dimension, while the construction industry attaches more importance to both the environmental and governance dimensions. Overall, a company’s overall performance in the three aspects of environment, society, and governance is closely linked to its performance growth, and the positive correlation between the balanced-weight ESG score and corporate performance is evident. However, due to the differences in weight allocation among different rating agencies, there may be a certain mismatch between the scoring results and the actual performance of the company. This research not only enriches the theoretical studies in the ESG field but also provides guidance for companies’ ESG practices, helping them better understand how to improve their performance and competitiveness by enhancing their ESG performance within the context of specific industries.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Junxian Cao
AU  - Zhenghong Sun
AU  - Juncheng Shi
AU  - Shuting Yang
AU  - Qinze Li
AU  - Yuxuan Wang
PY  - 2025
DA  - 2025/06/26
TI  - Research on the Applicability of ESG Ratings in Different Industries and Their Impact on Corporate Performance
BT  - Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)
PB  - Atlantis Press
SP  - 348
EP  - 360
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-770-0_40
DO  - 10.2991/978-94-6463-770-0_40
ID  - Cao2025
ER  -