Influence of Digital Transformation on Corporate ESG Performance

At the confluence of the digital economy and sustainable development, two major contemporary trends, how enterprises can leverage digital technologies to enhance their Environmental, Social, and Governance (ESG) ability has become a important topic for both academia and the business community. In this essay, based on panel data of 12,000 annual observations from 2015 to 2024, the following conclusions can be drawn: Firstly, digital transformation can indeed effectively enhance the ESG performance of enterprises, and this result is highly robust. Secondly, from a heterogeneity perspective, the effect of digital transformation on ESG improvement is particularly strong in the subset samples of non-state-owned property rights and companies located in the eastern region. The paper provides valuable insights for enterprises seeking to achieve sustainable development amidst the digital wave, as well as for government policymaking.