Digital technology innovation and corporate ESG performance: evidence from China

Using Chinese listed companies from 2010 to 2022, this study empirically examines the impact of digital technology innovation on corporate ESG performance. The results show that digital technology innovation significantly enhances corporate ESG performance, positively impacting E, S, and G aspects. The mechanism analysis indicates that digital technology innovation further improves enterprises' ESG performance by fostering green innovation, and enhancing the corporate governance structure. Moreover, the heterogeneity analysis reveals that digital technology innovation can better promote the improvement of ESG performance in larger enterprises, non-state-owned enterprises, industries with heavy pollution, non-high-tech industries, enterprises in the eastern and central regions, and regions with better business environments. This study enriches and expands the scope of research on the effects of the digital economy at the micro level, and provides new research perspectives to help listed companies effectively fulfil their ESG responsibilities and achieve carbon peaking and carbon neutrality goals.