Modern Economics & Management Forum

ESG includes three dimensions: Environmental, Social, and Governance. While my country's "Fourteenth Five -Year Plan" once again emphasized the strategic position of green development, it also proposed the "double carbon target". This article mainly adopts case analysis method, uses China Shenhua as a research object, analyzes the relationship between ESG and corporate value, and explores the impact of Chinese Shenhua ESG practice on its corporate value. This article found that China Shenhua actively carried out ESG practice, responding to the national green development strategy, increased the reputation of the enterprise, and reduced the business risk of the enterprise. At the same time, China Shenhua actively assumes social responsibility, disclose company information, reduce information asymmetry, and effectively increase corporate value. In the comparison with companies in the same industry, it was found that ESG practice has enhanced China's Shenhua's profitability, debt repayment capabilities, and operating capabilities, and at the same time, it has promoted the improvement of corporate stock prices. All in all, China Shenhua ESG practice has a positive effect on corporate value.