Does AI elevate corporate ESG performance? A supply chain perspective

Abstract As a pivotal catalyst for sustainable development, the evolution and integration of AI are propelling both companies and society toward a more efficient trajectory. Utilizing a multi‐period difference‐in‐difference (DID) model, the study assesses the impact of the 2019 China Artificial Intelligence Pilot (AIP) policy on corporate environmental, social, and governance (ESG). The study's findings are the following: (1) Optimizing corporate governance through artificial intelligence (AI), the AIP policy has significantly bolstered the ESG performance of companies in the pilot areas. (2) Mechanistic analysis demonstrates that the AIP policy elevates ESG by bolstering the efficiency of corporate supply chains. (3) Heterogeneity testing shows that the AIP policy exerts a more pronounced effect on non‐state‐owned companies, companies with high energy consumption, and those in the new energy sector. This manuscript furnishes empirical insights for evaluating the policy implications of AI development initiatives.

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Institutions

Publication Details

Journal
Business Strategy and the Environment
Published
2024-10-16
DOI
https://doi.org/10.1002/bse.3999
Citations
34
Primary Topic
Digital Transformation in Industry
Type
article
Field-Weighted Citation Impact
11.86

Funders

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article

Does AI elevate corporate ESG performance? A supply chain perspective

Boqiang Lin, Yitong Zhu
34 citations
Business Strategy and the Environment
Digital Transformation in Industry
11.86
article

Does AI elevate corporate ESG performance? A supply chain perspective

Boqiang Lin, Yitong Zhu
article en
34 citations

Abstract

Abstract As a pivotal catalyst for sustainable development, the evolution and integration of AI are propelling both companies and society toward a more efficient trajectory. Utilizing a multi‐period difference‐in‐difference (DID) model, the study assesses the impact of the 2019 China Artificial Intelligence Pilot (AIP) policy on corporate environmental, social, and governance (ESG). The study's findings are the following: (1) Optimizing corporate governance through artificial intelligence (AI), the AIP policy has significantly bolstered the ESG performance of companies in the pilot areas. (2) Mechanistic analysis demonstrates that the AIP policy elevates ESG by bolstering the efficiency of corporate supply chains. (3) Heterogeneity testing shows that the AIP policy exerts a more pronounced effect on non‐state‐owned companies, companies with high energy consumption, and those in the new energy sector. This manuscript furnishes empirical insights for evaluating the policy implications of AI development initiatives.

Business Strategy and the EnvironmentVol. 34(1)
Xiamen University (CN)
National Natural Science Foundation of China
Affordable and clean energy
Openalex Percentile: Top 1%
Digital Transformation in Industry
11.86
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Does AI elevate corporate ESG performance? A supply chain perspective — Boqiang Lin, Yitong Zhu · Business Strategy and the Environment (2024) | TGRS Research Map | TGRS