Author(s)

Shiyun Wang

Corresponding Author

Shiyun Wang

ABSTRACT

In the face of tighter resource constraints and serious environmental pollution, the country has stepped up efforts in industrial pollution control, and environmental protection requirements have continued to be strict, and the transformation of the industrial field to a resource-saving and environment-friendly industry is inevitable. The Green Economic value added (GEVA) indicator quantifies the environmental protection investment of enterprises, so that the impact of environmental factors on the enterprise performance is taken into account in the process of enterprise performance evaluation. GEVA avoids the shortcomings of traditional EVA evaluation indicators and builds a more comprehensive and objective performance evaluation indicator. The paper uses the calculation of Baoshan Iron & Steel Co., Ltd.'s GEVA to further verify the operability and suitability of GEVA, and proposes a guarantee for the application of GEVA. GEVA reasonably quantifies the environmental protection investment, effectively solves the problems that environmental factors are not considered in the enterprise performance evaluation, and makes the enterprise performance evaluation system more comprehensive and objective. Furthermore, it can prompt enterprises to actively strengthen environmental protection work, which has certain practical significance.

KEYWORDS

GEVA, environmental protection investment, performance evaluation