The Impact of Green Factory Rating on Corporate ESG Performance

Against the backdrop of the "dual carbon" goal and the deepening of the green development concept, this paper adopts the data of China's A-share listed companies from 2012 to 2023, and takes the green factory rating policy as an entry point to test the impact of this policy on the ESG performance of firms and its internal mechanism. The results show that firms awarded with green factories are conducive to enhancing their ESG performance. Mechanism analysis shows that green factory rating can promote corporate ESG performance through two paths: alleviating financing constraints and stimulating green innovation. Heterogeneity analysis finds that the policy has a more significant effect on the ESG performance of enterprises in low-carbon pilot cities and eastern regions. This paper provides empirical evidence and decision-making reference for improving the green industrial policy system and promoting the practice of corporate sustainable development.