ESG Performance of Chinese Listed Enterprises Participating in the Belt and Road Initiative

The Chinese government encourages enterprises participating in the Belt and Road Initiative (BRI) to improve their ESG performance to better align the BRI with sustainable development. This paper reveals the heterogeneous treatment effect of the BRI on the ESG performance of enterprises using time-varying DID and DDD models, powerfully validating that the BRI promotes the ESG performance of participating enterprises. According to our mechanism analysis, the BRI promotes the ESG performance of enterprises involved in international infrastructure projects and the development of trade routes. However, it has no significant impact on enterprises involved in outward foreign direct investment, exploring international markets, and providing support services and others. According to our heterogeneity analysis, the BRI promotes the ESG performance of state-owned enterprises (SOEs) more than that of non-SOEs, the ESG performance of non-manufacturing enterprises more than that of manufacturing enterprises, and the ESG performance of enterprises on the Main Board more than that of enterprises on other boards. These findings can provide policymakers and enterprise managers with guidance on improving ESG performance and clarify the micro-level empirical evidence of the performance of the BRI in implementing sustainable development.