The positive impact of logistics innovation development on firms' ESG performance: Evidence from China's pilot programs

As logistics networks play an increasingly prominent role in the global economy, the problems of high costs and high pollution they face have become increasingly severe. Against this backdrop, exploring the green development effect of logistics innovation policy is of great importance. This study regards China's pilot project for the innovative development of modern logistics cities (MLID) as a quasi-natural experiment. Based on data from A-share listed companies from 2011 to 2022, it systematically examines the impact of this logistics innovation policy on corporate ESG performance using a difference-in-differences approach. The study yields the following findings. First, logistics innovation and development can significantly improve corporate ESG performance. Decomposition into E, S, and G pillars shows that governance responds most strongly, environment moderately, and social the weakest. This reflects that governance is the most direct channel, while environmental and social gains may take longer to materialize. Second, channel analysis provides supportive evidence for three proposed pathways through which MLID may affect ESG performance, including digital transformation, supply chain risk governance, and resource allocation efficiency. Third, the positive impact is stronger for firms with higher policy exposure intensity, namely faster inventory turnover, higher logistics costs, or longer supply chain distances. In terms of contextual factors, the effect is more pronounced in regions with higher marketization, in industries with lower concentration, and in non-state-owned enterprises. Moreover, using firm-level substantive indicators including digital investment, carbon emissions, and training expenses, as well as city-level objective outcomes such as freight volume, urban carbon emissions, and traffic accidents, we find suggestive evidence that alleviates the concern that the observed ESG improvements are merely disclosure-driven. This study provides micro-level causal evidence from the intersection of macro logistics policy and corporate ESG, offering important policy implications for promoting green supply chains and sustainable development.