The Impact of ESG on New Energy Vehicle Companies

Lafayette College, 18042, Easton, PA, USA

^* Corresponding author: guoy@lafayette.edu

Abstract

With the global shift toward sustainability, Environmental, Social, and Governance (ESG) factors have become crucial elements of corporate strategy, especially in the new energy vehicle (NEV) sector. Based on two case studies (battery recycling and echelon utilization, as well as the public transportation’s electrification), ESG initiatives of BYD are explored. In the first case study, the endeavors of BYD to alleviate the environmental influence of lithium-ion batteries through the reutilization of retired batteries and improvement of resource efficiency are assessed. Nonetheless, due to challenges like high recycling expenses, large-scale implementation is hindered. In the second case study, the contributions of BYD to the electrification of public transportation are explored. However, issues associated with a lack of charging infrastructure impede extensive application. In this research, the leading role of BYD in sustainable NEV development is discussed. At the same time, the need of cooperation among investors, industries, and governments is highlighted to address finance and technology obstacles. The findings are conductive to more widely discussing sustainable mobility and green manufacturing. In addition, the significance of tactic partnerships, technical innovation, and policy support in propelling international ESG goals is emphasized.