ESG Performance and Digital Transformation: Evidence from Chinese A-Listed Companies

Digital transformation is increasingly recognized as a key mechanism for enterprise upgrading, facilitating innovation, enhancing resource efficiency, and sustaining competitive advantage. This study investigates the influence of environmental, social, and governance (ESG) performance on the digital transformation of China’s new energy enterprises. Drawing on panel data from A-share listed firms from 2010 to 2023, the analysis assesses both the direct effect of ESG performance and the mediating role of dynamic capabilities, including absorptive, adaptive, and innovative capacities. The empirical results yield three key findings. First, superior ESG performance significantly advances digital transformation by expanding firms’ resource bases and supporting technological renewal. Second, the effect is more pronounced in mature firms and regions with supportive institutional environments and attenuated in early-stage or resource-constrained contexts. Third, the mediation analysis confirms that ESG fosters transformation by strengthening dynamic capabilities. These findings underscore the strategic role of ESG in enabling digital transformation and offer theoretical and practical insights for firms pursuing sustainability-oriented transformation.