Impact of ESG Disclosure Falsification on Enterprises - A Case Study of Jiangsu Shuntian

In the context of global sustainable development, the importance of ESG disclosure has become increasingly prominent, and corporate transparency and social responsibility have become the focus of attention for investors and regulators. Taking Jiangsu Shuntian’s ESG disclosure falsification incident as an example, this study analyses in depth the background and reasons of the incident and its impact on the capital market. By exploring Jiangsu Shuntian’s false disclosure on environmental protection, employee welfare and social responsibility, it reveals how market pressure, immature ESG system, lack of regulatory awareness and profit-driven factors contribute to the occurrence of information falsification. Unfortunately, results show that falsification not only invites legal liabilities with exorbitant fines levied as punishment, but also greatly diminishes investor trust while sullied the corporate brand image, triggering internal reflection and strengthening of ESG management systems internally. Further, regulators respond to the incidents by tightening scrutiny over ESG disclosure, leading to the market’s take towards greater attention to transparency and responsibility. The study articulates the significance of transparency and authenticity of information in sustainable investment, while other useful references to enhance corporate and policy-making efforts for a more accountable green finance regime are proposed.