The evaluation of ESG strategy implementation effect based on performance prism: evidence from the industrial and commercial bank of China

Abstract

An increasing number of Chinese listed companies have opted to integrate the environment, social and government (ESG) strategy into the long-term corporate development strategies under the dual pressures of climate and environmental crises. However, the effect of ESG on comprehensive performance and harmonization of different stakeholders are unclear. Based on the performance prism model, this paper analyses the implementation effect of ESG strategy by selecting relevant qualitative and quantitative indicators of industrial and commercial bank of China (ICBC) and evaluates the effect of ESG strategy implementation by using the comparative method and entropy value method. There were several main findings:(1) implementing ESG strategy has a positive effect on the sustainable development of ICBC as a whole; (2) ESG strategy has a different degree of positive effect on each dimension of stakeholders. It has the greatest effect on governments, but less effect on investors. These findings contribute to a deeper understanding of the ESG strategy and their important implications to the establishment and improvement of ESG evaluation system.