In today's global business arena, ESG (Environmental, Social, and Governance) factors have quietly transformed from moral or public relations embellishments of the past to an indispensable cornerstone for long-term business prosperity. So, how does ESG profoundly affect the operational trajectory of enterprises?
（1） Green transformation of enterprise operation and production
In the global business landscape, ESG has become the command stick for enterprise operations and production, leading companies towards a more sustainable direction. China, as the world's factory, has varying degrees of emphasis on ESG among enterprises, and companies that ignore its consequences have paid a heavy price. Taking Jiujiang Petrochemical Company in Jiangxi Province as an example, an explosion in 2010 caused benzene leakage, polluted the Yangtze River water source, and threatened the drinking water safety of millions of residents. As a result, the company has been fined, shut down for rectification, and has lost valuable public trust. From an ESG perspective, this incident highlights the destruction of the environment (E), social (S) turbulence, and governance (G) failure, warning companies that ignoring ESG will reap the consequences and have far-reaching impacts.
（2） Green reshaping of market positioning and brand image
In the minds of consumers, a company's attitude towards ESG is directly related to the value and trust of its brand. Pacific pet food is a vivid example. In 2019, due to the detection of harmful substances in products, the brand image plummeted. The awakening of consumer environmental awareness has made companies that actively practice green production and support sustainable supply chains highly favored, while companies that neglect environmental responsibility are gradually marginalized. From an ESG perspective, this incident not only violated the red line of the environment (E), but also sparked widespread questioning from society (S). The slow response to governance (G) further exacerbated the situation, causing the company to pay a heavy market price.
（3） Green Strategy for Talent Attraction and Retention
The new generation of labor, especially millennials and Generation Z, have higher expectations for corporate social responsibility, environmental performance, and governance transparency. The Foxconn employee suicide incident is a profound lesson from the company's lack of social responsibility (S). Long working hours, high-pressure environments, and insufficient employee care not only led to tragedies, but also plunged the company into the dilemma of talent loss. From an ESG perspective, companies need to value the rights and benefits of their employees, build a healthy and fair working environment, in order to attract and retain outstanding talents, and inject vitality into the sustainable development of the company.
（4） Green orientation of investment direction and strategy
In the wave of globalization, technological progress, and social change, investors are increasingly focusing on the ESG performance of companies. The Volkswagen emissions scandal is a direct consequence of neglecting environmental (E) and social (S) responsibilities. The loopholes in corporate decision-making and internal supervision (G) have caused investors to lose confidence in it, leading to a sharp drop in stock prices and investors withdrawing one after another. This incident once again proves that investment decisions that ignore ESG factors will expose companies to significant economic and reputational risks.
（5） Green Blueprint for Enterprise Strategic Planning
In the complex and ever-changing global market, companies must integrate ESG into their strategic planning in order to maintain competitiveness. Huawei's global experience is closely related to its shortcomings in corporate governance (G). Although technologically advanced, the lack of transparency and public communication has led to a crisis of trust, which in turn has affected its position in the international market. This tells us that companies should not only focus on technology and the market, but also pay attention to the comprehensive practice of ESG and build a healthy and sustainable development environment.
ESG has become an indispensable part of corporate strategy and operations. In the global economic environment, attaching great importance to ESG factors is not only a manifestation of corporate social responsibility, but also a key to enhancing the long-term competitiveness of enterprises. Enterprises should fully integrate ESG thinking, use green transformation as a driving force, and achieve sustained, healthy, and responsible growth.