Corporate Digital Transformation and ESG Performance

This study utilizes panel data from China's A-share listed companies (20122024) to investigate the relationship between digital transformation and corporate ESG performance. The results demonstrate that digital transformation substantially improves ESG outcomes, a finding that remains robust across multiple sensitivity tests. Mechanism analysis reveals that digitalization enhances ESG performance primarily by stimulating green technology innovation. This innovation facilitates optimized resource utilization and a reduction in environmental footprints. Furthermore, public environmental concern acts as a positive moderator, strengthening the beneficial impact of digital transformation on ESG by applying external pressure on firms. Theoretically, this research contributes to the literature on digitalization and ESG by uncovering the mediating role of green innovation and the interactive effect of public environmental sentiment. The study concludes that digital transformation represents a viable pathway for elevating corporate ESG performance, with green innovation and heightened public environmental attention serving as key drivers. These findings offer valuable theoretical insights and practical implications for policymakers promoting digital technology adoption and for businesses pursuing sustainable development goals.