Sustainability Uncertainty and Digital Transformation: Evidence from Corporate ESG Rating Divergence in China

Xiaoya Chen, Yue Song, Xueqin Hu and Guangfan Sun ()
Additional contact information
Xiaoya Chen: School of Business, Renmin University of China, Beijing 100872, China
Yue Song: School of Business, Renmin University of China, Beijing 100872, China
Xueqin Hu: School of Economics, Wuhan University of Technology, Wuhan 430070, China
Guangfan Sun: Aviation Industry Development Research Center of China, Beijing 100029, China

Sustainability, 2025, vol. 17, issue 14, 1-17

Abstract: ESG serves as a key metric for measuring corporate sustainability, but divergence among rating agencies has led to uncertainty in such an assessment. This investigation identifies ESG rating divergence as a critical catalyst for corporate digital transformation, establishing empirical analysis through a robust positive correlation between the heterogeneity in sustainability assessments and organizational digitalization intensity. Comprehensive robustness examinations and endogeneity controls substantiate the persistent significance of this relationship. Mechanistically, such divergence drives technological adaptation by restructuring the R&D team composition and elevating capital allocation toward innovative initiatives. Contextual heterogeneity manifests through amplified effects in firms with elevated analyst scrutiny and stringent internal governance, whereas pollution-intensive enterprises exhibit significant effect suppression. These findings collectively advance theoretical frameworks concerning ESG evaluation economics and digital transformation drivers, while furnishing actionable implementation blueprints for corporate digitization strategists.

Keywords: sustainability uncertainty; ESG rating divergence; corporate digital transformation; R&D personnel structure; R&D intensity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/14/6515/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/14/6515/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:14:p:6515-:d:1702841

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().