Study on the Impact of Digital Transformation on ESG performance

In the context of a new wave of technological revolution, companies are rapidly advancing their digital development, making the digital transformation of economic activities a crucial strategic approach. This paper empirically examines the impact of digital transformation on ESG performance in publicly listed companies, as well as the mechanisms underlying this relationship.Drawing on data from Shanghai and Shenzhen A-share listed companies between 2012 and 2022, the findings of this study demonstrate that corporate digital transformation significantly enhances ESG performance. Moreover, the positive effect of digital transformation on ESG becomes more pronounced as the quality of a company’s internal controls improves and its financing constraints diminish. For non-state-owned enterprises, the positive impact of digital transformation on ESG is even more significant. This study integrates digital transformation and corporate social responsibility within a unified analytical framework, thereby expanding existing research and offering relevant recommendations and future directions.