With the rapid development of ESG investment, more and more world-renowned institutions have started to establish ESG rating systems to measure the sustainable development of listed enterprises, but due to the late start of ESG in China, and the current domestic research on ESG, rating scores is limited to the impact of ESG rating scores on corporate financial risks, corporate financing constraints and the reasonableness of ESG rating systems. Therefore, this study establishes a localized ESG rating system in China based on China's policies and national conditions, which helps China's ESG development to advance rapidly and also provides an effective reference solution for the Chinese government to monitor the sustainable development behavior and development of listed enterprises.
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