Study on the Performance Evaluation of Sungrow from the Perspective of Green Governance

Abstract

The "dual carbon" strategy has pushed Chinese new energy firms to rethink how they manage environmental responsibilities, and the link between such management and financial results has drawn growing scholarly attention. This paper takes Sungrow Power Supply as a case, looking at the five years from 2021 through 2025, and pairs financial statement analysis with environmental performance indicators to judge whether and how the company's green governance has paid off. What emerges is a picture of steady improvement on both fronts. Energy use per unit of output has fallen, as has pollutant intensity, and by 2025 renewable sources supplied 79% of the electricity Sungrow consumed-enough to lift its MSCI ESG rating to AAA. On the financial side, the energy storage business has expanded rapidly, lifting revenue and profit in tandem, and leverage has come down. The evidence suggests that environmental gains and financial gains at Sungrow have reinforced rather than crowded out one another, which carries practical lessons for other manufacturers navigating their own low-carbon transitions.