Wei Ping, Mao Yue, Zhu Qi and Shu Hao

　　Business School, Central South University

　　Abstract：The basis of green development is the sustainable development of enterprises, and the core of enterprises’ sustainable development is the transformation of business models through the reconstruction of corporate value. Under the paradigm of ecological civilization, the concept of ESG (Environmental, Social and Corporate Governance) is becoming an important force behind corporate value reconstruction, guiding enterprises to innovate business models in the direction of sustainability. Based on the idea of the dimensions of the “shareholder channel-industrial chain channel-consumer channel,”this paper builds up a theoretical framework to interpret how ESG creates corporate value through the shareholder channel, the industrial chain channel, and the consumer channel, and provides empirical tests. We find that: first, the sustainable transformation of shareholder preferences is the center for ESG’s creation of corporate value; second,ESG performance helps reduce the transaction costs between upstream and downstream enterprises in industrial chains; and third, differences in ESG products create differentiated value for consumers. This study reveals the transformation of the direction and mode of corporate value creation in the course of green transition and provides micro-evidence of enterprises’ transition toward ESG goals in the Chinese context.

　　Keywords: ecological civilization, ESG, corporate value, social value