| Issue |
SHS Web Conf.
Volume 225, 2025
2025 3rd International Conference on Financial Management and the Digital Economy (ICFMDE 2025)
|
|
|---|---|---|
| Article Number | 03035 | |
| Number of page(s) | 6 | |
| Section | ESG, Green Finance & Sustainable Value Creation | |
| DOI | https://doi.org/10.1051/shsconf/202522503035 | |
| Published online | 13 November 2025 | |
The Effectiveness of ESG in Risk Control: Review and Research Prospects
Bachelor of Business, Royal Melbourne Institute of Technology, Melbourne, Victoria, Australia
* Corresponding author: zzhou019@mymail.sim.edu.sg
As companies pay more attention to ESG (environment, society, and corporate governance), they also pay more attention to controlling risks and improving corporate performance through ESG practices. This article comprehensively reviews the impact of ESG on performance through risk control mechanisms, mainly from the aspects of environmental risks and business risks. It is found that effective ESG practices can reduce corporate risks to a certain extent and improve the market competitiveness of the enterprises. However, there are still differences in research methods and conclusions in existing research. Based on the previous research, this article proposes future research directions, emphasizes the differences and regulatory effects of ESG in different industries, and shows that its mechanism of action significantly affects corporate financial performance.
© The Authors, published by EDP Sciences, 2025
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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