Will Digital Transformation Produce Better ESG Performance? Evidence from Construction Sector in China

Given the rising interest in environmental, social, and governance (ESG) globally, we investigated whether digital transformation is related to superior ESG performance, considering firms from construction sector in China with the aim of bridging a gap in relevant research. To verify our hypotheses, we applied regressions with a data panel using the CSMAR and iFind database to analyze data from construction sector in China between 2018 and 2022. The results suggest that companies with digital transformation at different life-cycle stages present various ESG performance, when controlling for the other factors. Our study contributes to research on the relationship between digital transformation and ESG performance, as well as to the practice of sustainability management in construction companies.