A Collaborative Framework for Digital Internal Control and ESG Governance in Hainan Free Trade Port

Abstract

With the gradual implementation of the island-wide free trade port policy in Hainan, enterprises in Hainan free trade port are facing the compliance requirements of ESG authentication and EU carbon tariff while adapting to the policy. The triple compliance pressure makes the problem of digital internal control system and ESG governance of import and export enterprises on Hainan Island more and more obvious, and it is difficult to adapt to Hainan’s simple tax system of “zero tariff, low tax rate and simple tax system” and the import and export supervision mode of “first line liberalization and second line control”. Based on the standard method, theoretical analysis method, and system to analyze the coupling of digital ESG governance and internal control mechanism, in identifying close supervision, ESG verification, carbon tariff related compliance risk, based on establishing collaborative governance system, puts forward the phased implementation of the management system of the specific path. The study finds that there is a logical coupling between digital internal control and ESG governance, and the collaboration between the two can effectively solve the multiple compliance dilemmas of enterprises. Through the establishment of this cooperative mechanism, enterprise establish adaptation policy of free trade port management system, is the enterprise promote compliance ability and realize the sustainable development of the critical path. This paper enriches cross-research on corporate governance, digital internal control and ESG collaboration in Hainan free trade port, provides practical guidance for enterprise compliance management, and provides reference for regulatory authorities to optimize policies.