Author(s)

Shuyong Cao, Fengyue Li, Jing Yan

Corresponding Author

Jing Yan

ABSTRACT

Sustainability is the development goal of our society, and the old model of capital for profit is clearly outdated. In this context, the implementation of ESG strategies becomes a powerful way to achieve sustainable development. Taking Sinopec as an example, this paper first analyses the literature on ESG, listed companies, and the crude oil industry using the literature research method. In the specific analysis of the impact on Sinopec's financial position, the event study method was used to analyze the short-term financial position impact and concluded that the disclosure of information on participation in ESG events had a positive impact on changes in Sinopec's share price and share count in the short term. The analysis of the long-term financial position in terms of profit and assets shows that the implementation of the ESG strategy has led to the optimization of Sinopec's asset structure. The impact of the implementation of the ESG strategy on financial indicators is then analyzed using DuPont analysis in conjunction with relevant Sinopec financial reports, leading to the conclusion that the overall investment trend in Sinopec is moving towards medium to long-term investment. Overall, the disclosure of information on participation in ESG events has a favorable impact on its share price volatility in the short term and the implementation of ESG strategy has a positive impact on Sinopec's financial position.

KEYWORDS

ESG, Sustainability, Sinopec