Corporate digital transformation, ESG performance and carbon emissions

This study selects data from A-share listed companies from 2010 to 2023 as a sample to empirically examine the impact of corporate digital transformation on carbon emissions and ESG performance's intermediary function. According to the study, corporate digital transformation can successfully lower corporate carbon emission levels by improving resource utilization efficiency, strengthening environmental governance capabilities, and greatly optimizing production and operation processes. This effect is most noticeable in high-tech businesses, businesses with significant growth potential, and eastern locations. Additionally, businesses that are pursuing digital transformation are able to enhance their overall performance in terms of environmental, social, and governance (ESG) factors, which further reduces carbon emissions through ESG processes. In order to achieve low-carbon transformation through digitalization and ESG practices, government departments should enhance their policies and incentives for carbon emission reduction. Companies should also promote the integration of digital technology with green production and bolster their digital transformation plans.