Integrated efficiency and influencing factors analysis of ESG and market performance in thermal power enterprises in China: A hybrid perspective based on parallel DEA and a benchmark model

The occurrence of global extreme climate events is prompting the international community to pay greater attention to the severe challenges posed by environmental issues. The high energy consumption of China's traditional thermal power enterprises has led to increasingly high emissions of pollutants, as the market enters a critical period of parallel development between green transformation and market performance. This research focuses on 21 listed Chinese thermal power companies. By juxtaposing green transformation units and market performance units and using the ESG index to measure the green transformation achievements of these thermal power enterprises, it applies a parallel DEA model to evaluate both ESG and market performance efficiencies. It creatively employs ESG metrics and stock prices as outputs, comparing and evaluating them based on macro-level policies and the geographical locations of the companies. Finally, the benchmark model helps analyze the organizational and environmental factors affecting the synergistic performance of ESG and the market performance of China's thermal power sector. The results indicate the following: first, the overall efficiency of thermal power enterprises is significantly and positively correlated with the economic development of their regions. Second, the ESG efficiency of most thermal power enterprises surpasses their market performance efficiency. Third, the input-output efficiency values at various stages of the thermal power enterprises are generally stable and improving. Fourth, verification of the benchmark model reveals that the equity concentration index, environmental tax burden, and local economic level have a significant impact on the efficiency of thermal power enterprises. However, subsequent tests indicate that the geographical scope of business operations introduces a degree of heterogeneity. Therefore, these enterprises should allocate resources reasonably according to the specific conditions of their locations to achieve optimal economies of scale. Additionally, the government should develop practical carbon emission standards based on local objective conditions and offer differentiated subsidies.