Author(s)

Xiaoyan Tang ¹

Affiliation(s)

¹ School of Economics and Management, Nanchang Institute of Science and Technology, Nanchang, Jiangxi, China

Corresponding Author

Xiaoyan Tang

ABSTRACT

As the problem of climate change becomes more and more serious, governments around the world are trying their best to mitigate and adapt to the impact of climate change. As the backbone of national economic development, enterprises also need to play an important role in it. As a bridge to measure the relationship among enterprises, the environment and social responsibility, ESG is extremely important today. Exploring the impact of corporate ESG performance on financial performance can help companies' better address environmental and social issues while ensuring their own business results. This paper aims to conduct an empirical study on the impact of green credit policies on ESG indicators and financial performance based on fuzzy sets. This paper first explains green credit, and then elaborates on intuitionistic fuzzy set theory. Intuitive fuzzy set theory is an extension of fuzzy sets. On the basis of fuzzy set membership degree, it introduces the concept of irrespective of membership degree and hesitation degree, and extends from one-dimensional fuzzy sets to three-dimensional intuitionistic fuzzy sets. Finally, taking Pharmaceutical Technology Co., Ltd. (Company A) as an example, this paper explores the ESG performance of the company, and analyzes the relationship between the ESG performance and financial performance of Company A. The experimental results of this paper show that enterprises can improve the production efficiency of their own equipment based on excellent ESG performance. It ensures the completeness of the production organization and the strength of product delivery. It improves the level of operation and management, and improves the utilization rate of production capacity, thereby enhancing the financial performance of the enterprise, and its overall performance is increased by 30%. Therefore, the excellent ESG performance of Company A has a positive impact on financial performance.

KEYWORDS

ESG Indicators, Fuzzy Sets, Green Credit, Financial Performance

CITE THIS PAPER

Xiaoyan Tang, Empirical Impact of Green Credit Policies on ESG Indicators and Financial Performance Based on Fuzzy Sets. Accounting, Auditing and Finance (2024) Vol. 5: 103-117. DOI: http://dx.doi.org/10.23977/accaf.2024.050214.

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