With the proposal of China's carbon peak and carbon neutral strategic goals, the environmental protection industry is facing significant development opportunities and challenges. As a crucial support to achieve the goal of carbon peak and carbon neutral, environmental protection industry unavoidable has financial risks in the process of transformation and upgrading. The purpose of this study is to build A set of financial risk evaluation system suitable for environmental listed companies under the background of dual-carbon, and use factor analysis method to quantitatively assess the financial risk of 93 A-share environmental protection enterprises. It is found that the financial risk level of environmental protection listed companies is different, among which profitability and solvency are the most important factors affecting the financial risk of enterprises. Therefore, this paper also throws out some suggestions for environmental protection enterprises based on the data analysis results to promote the risk control and sustainable development of the environmental protection industry.

Jia Dai. Financial Risk Assessment of Environmental Protection Enterprises under the Background of Carbon Peak and Carbon Neutrality. Academic Journal of Business & Management (2024) Vol. 6, Issue 3: 282-288. https://doi.org/10.25236/AJBM.2024.060336.

[1] Zhou Hongchun & Shi Zuoting.(2021). Green low-carbon circular development of China's industry under the background of carbon neutrality. New Economy Guide (02),9-15.

[2] Peng D Y. (2021). Research on financial risk control of China's energy-saving and environmental protection listed companies. Statistics and Management (03),66-70.

[3] Li S (2014). Investment and financing strategy selection for the development of China's environmental protection industry [J]. Comparison of Economic and Social Systems (3),60-69

[4] Xu W H & Zhuang W D. (2015). Empirical research and countermeasures on regional competitiveness of China's environmental protection industry based on factor analysis.] Science and Technology Management Research (10),45-48.

[5] Song Jing.(2024). Research on the Motivation of Financial Fraud in Environmental Protection Enterprises and Audit Responses from the perspective of Risk Factors (Master's Thesis, Sichuan Normal University).

[6] Ministry of Industry and Information Technology.(2021). 14th Five-Year Plan for Industrial Green Development

[7] Mo Kecong.(2015). Research on Risk Sharing of PPP Financing Model in the Field of Environmental Protection Master degree thesis, University of International Business and Economics.]

[8] Yue W C. (2023). Eight difficulties in environmental protection industry innovation in the new era [J]. Environmental Economics,No.351(15):48-51

[9] Wang Ke & Guo Xiaoxi.(2017). Empirical analysis of synthesis performance of listed companies in environmental protection industry driven by policies: a synthesis study of factor analysis and cluster analysis.] Finance and Accounting Monthly (03)27-36.