The difference between esg and traditional financial indicators

The difference between financial report and ESG report: Financial report reflects the financial status and operating results of an enterprise. ESG report is the policy and performance of an enterprise in its environment, society and governance.

Financial report is a written document reflecting the financial status and operating results of an enterprise, including balance sheet, income statement, cash flow statement and statement of changes in owner's equity. General international or regional accounting standards have special independent financial reporting standards. "Financial report" is an internationally accepted term.

However, the term "financial accounting report" is used in the current relevant laws and administrative regulations in China. In order to maintain the consistency of the legal system. The basic standards still do not use the word "financial accounting report".

But at the same time, the word "financial report" is introduced, pointing out that "financial accounting report" is also called "financial report", which better solves the problem of integrating with international standards based on national conditions.

ESG report:

In the esg report, ESG stands for environment, society and governance.

Refers to the Report on Environment, Society and Governance of Shale Gas Development of China Petrochemical Co., Ltd. issued by China Petrochemical Co., Ltd. on February 29, 20 14. The report is mainly divided into "Chinese Dream of Clean Energy" and "Standardized Governance and Safe Operation".

"Environment-friendly Green Demonstration" and "Building Harmonious Community Communication" consist of four chapters. This paper mainly introduces the ESG concept and practice of China Petrochemical Company in shale gas development, including safe and standardized operation, water resources protection, greenhouse gas emission reduction and treatment. ESG report (environmental, social and governance report) is the policy and performance of enterprises in environmental, social and governance.

And communication methods that have a significant impact on regular disclosure to investors and other stakeholders. By regularly publishing ESG reports, enterprises can strengthen risk management, improve financing capacity, meet supply chain needs, enhance reputation, reduce costs and provide profit margins, encourage innovation, retain talents and gain social recognition.