Supply Chain Finance, Supply Chain Concentration and Corporate ESG Performance

Creating diversified value has become a strategic goal for contemporary corporate development, with supply chain finance offering new avenues to enhance environmental, social, and governance (ESG) practices. This study analyzes a dataset from A-share listed companies spanning 2014 to 2023 to empirically investigate how supply chain finance influences ESG performance and the moderating role of supply chain concentration. Results indicate that advancements in supply chain finance positively impact ESG performance, providing companies with a pathway to strengthen sustainable practices. However, a higher supply chain concentration has a significant negative relationship with supply chain financing, indicating that companies with more concentrated supply chains may face challenges in fully leveraging supply chain finance to enhance ESG outcomes. Additionally, supply chain concentration negatively mediates the relationship between supply chain finance and ESG performance, suggesting that supply chain structure influences the effectiveness of financial strategies on ESG outcomes. This research provides theoretical and empirical insights to guide companies toward sustainable decision-making and improved supply chain practices aligned with ESG objectives.