THE ROLE OF ESG RISK ASSESSMENT IN CORPORATE PROJECTS: A MULTIDIMENSIONAL THEORETICAL AND EMPIRICAL ANALYSIS

This study examines the multidimensional role of ESG risk assessment in corporate projects through theoretical frameworks (stakeholder theory, institutional complexity) and empirical analysis of Chinese A-share manufacturing firms (2013–2023; 23,660 observations). Key findings reveal ESG performance significantly enhances corporate high-quality development (β=0.185, p<0.01), with environmental risk management showing the strongest marginal impact. Digital transformation acts as a critical positive moderator: each 1-unit increase in digitization amplifies ESG’s value contribution by 23.7% through dual mechanisms – efficiency gains (e.g., blockchain reducing ESG report errors by 65%) and signal enhancement (IoT data increasing green premiums by 2.3%). Significant industry heterogeneity exists: high-tech firms achieve higher ESG governance efficiency (0.9071) versus traditional manufacturers (0.3994), attributed to green innovation synergies. Institutional complexity (e.g., conflicting domestic/international rating weights) drives ESG rating divergences, prompting the proposed "Dynamic Adaptive Governance Framework." This framework advocates risk quantification via an ESG Risk Matrix (e.g., CO₂ intensity × carbon price sensitivity), differentiated resource allocation (high-tech: 2.5%–3.2% revenue for R&D; traditional: 55% ESG budget to environmental tech), and institutional adaptation ("GLOBE-Local" strategies like emphasizing religious respect in Southeast Asia). Methodologically, the DN-DDF efficiency model uncovers stage-specific bottlenecks, showing sustainability phases lag profitability stages by 7.4% efficiency. Practical implications include leveraging digital tools for ESG compliance and customizing governance by industry/region. Limitations involve environmental data gaps and dynamic external shocks. The research validates ESG’s economic value through multidimensional risk interactions, establishes digitization as a key enabler, and provides actionable benchmarks for complex institutional environments.