How Corporate Digital Transformation Affects ESG Performance: Empirical Evidence from Chinese Listed Enterprises

Abstract

This study investigates how corporate digital transformation influences ESG performance using panel data from Chinese A-share listed firms over the period 2013–2025. A firm-level digital transformation index is constructed based on the frequency of digital-related keywords appearing in annual reports. It is found that the corporate digital transformation has a significant positive effect on ESG performance. In other words, the higher the degree of digital transformation, the better the ESG performance of enterprises. Further research proves that the impact of digital transformation on ESG performance is more significant in state-owned enterprises, large-scale enterprises and enterprises in high-tech industries. Thus, this paper verifies the value of digital transformation in empowering enterprise sustainable development, and provides an empirical basis and practical guidance for listed enterprises to optimize ESG performance with the help of digital transformation.