What Drives ESG in High-Tech Companies? The Role of Digital Technology Innovation

The rapid advancement of digital technologies is driving the digital transformation of the global economy. Concurrently, increasing environmental pollution and social challenges compel companies to adopt business models that integrate economic efficiency and sustainability, actively practicing the principles of Environmental, Social, and Governance (ESG). Based on data from 1,220 high-tech enterprises from 2011 to 2021, this paper identifies patents associated with digital innovation activities according to their primary classification and explores the impact of digital technology innovation (Dti) on ESG performance. Our main findings include: (1) Dti significantly improves the ESG performance of high-tech enterprises, notably improving social and governance scores, while not having a significant impact on environmental scores; (2) Dti influences ESG through three mechanisms: increasing corporate information transparency, enhancing the quality of internal controls, and generating more positive media coverage; (3) The executive's environmental background can amplify the effect of Dti on ESG; (4) The positive impact of Dti is stronger in labor-intensive enterprises, private companies, and (SMEs. Finally, relevant policy suggestions are put forward.