Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)

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The Impact of ESG Factors on the Firm Performance

Authors
Yueyuan Yang1, *
1School of Economics and Management, Beijing Jiaotong University, Weihai, 264401, China
*Corresponding author. Email: 22725072@bjtu.edu.cn
Corresponding Author
Yueyuan Yang
Available Online 3 July 2025.
DOI
10.2991/978-94-6463-748-9_102How to use a DOI?
Keywords
ESG Factors; Firm Performance; Long-Term Strategy
Abstract

In the evolving global business environment, this paper examines the impact of ESG on enterprises. Primarily, this paper introduces the background of ESG development in the changing business environment. This paper mainly discusses from four aspects. First, ESG rating plays a key role in shaping investors’ expectations. Secondly, from the perspective of risk management, effective risk management can minimize the negative impact, thereby enhancing the company’s reputation and ensuring long-term profitability. Thirdly, integrating ESG into a long-term strategy is critical. This can enhance the overall strength of the company and align investor expectations with consumer demand. However, over-investing in ESG can lead to undesirable consequences such as increased financial burdens and ESG inequality, which can damage a company’s reputation and growth prospects. In conclusion, while ESG has a profound impact on all aspects of business operations, companies should balance sustainability with cost-effectiveness when implementing ESG strategies to achieve long-term stability and create value for society.

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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Volume Title
Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 July 2025
ISBN
978-94-6463-748-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-748-9_102How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Yueyuan Yang
PY  - 2025
DA  - 2025/07/03
TI  - The Impact of ESG Factors on the Firm Performance
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 938
EP  - 945
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_102
DO  - 10.2991/978-94-6463-748-9_102
ID  - Yang2025
ER  -