Impact of ESG Performance on Corporate Total Factor Productivity

Innovation is the key support for the high-quality development of China’s economy and the lifeblood of development for enterprises to maintain their core competitive advantages. Based on data from China’s A-share listed companies from 2011 to 2021, this paper has studied how ESG affects corporate total factor productivity. The study finds that good ESG performance promotes the corporate total factor productivity. Further, the promotion effect is more significant in state-owned enterprises and polluting enterprises. The analysis in this paper enriches and develops the theoretical research on the impact of enterprise ESG performance on total factor productivity, which not only provides an effective path for the sustainable development of enterprises in China but also offers a reference for the high-quality development of China’s economy.