Digital transformation and corporate ESG: Evidence from China

With the fast growing of digital technologies, digitalization is becoming a dominant force in corporate operation. This paper examines the impact of digital transformation on corporate environmental, social and corporate governance (ESG). Based on the data of heavy polluters in China's A-share market from 2010- 2021, the study finds that heavy polluters with a high degree of digital transformation have higher ESG levels. Furthermore, there are heterogeneous characteristics of digital transformation to enhance ESG responsibility performance, and in state-owned firms heavy, ESG level is more sensitive to digital transformation.