Does Digital Transformation Improve Manufacturing ESG Performance: Evidence from China

Puhao Guo, Xiangqian Wang (), Huaiyin Jiang and Xiangrui Meng
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Puhao Guo: School of Economics and Management, Anhui University of Science and Technology, Huainan 232001, China
Xiangqian Wang: School of Economics and Management, Anhui University of Science and Technology, Huainan 232001, China
Huaiyin Jiang: School of Economics and Management, Anhui University of Science and Technology, Huainan 232001, China
Xiangrui Meng: School of Economics and Management, Anhui University of Science and Technology, Huainan 232001, China

Sustainability, 2025, vol. 17, issue 16, 1-19

Abstract: In the Industry 4.0 era, marked by rapid digital technological breakthroughs, the adoption of environmental, social, and corporate governance (ESG) is crucial for improving corporate management capabilities and promoting sustainable corporate development. We analyze data from 769 A-share listed companies in China’s manufacturing sector from 2011 to 2023 to examine the impact and transmission mechanism of digital transformation on ESG performance in the manufacturing industry. The findings demonstrate that digital transformation significantly improves manufacturing ESG performance. The results of the mechanism study demonstrate that digital transformation can enhance the ESG performance of the manufacturing sector through three channels: strengthening organizational resilience, promoting technological innovation dynamics, and increasing the green total factor productivity of enterprises. The heterogeneity test results indicate that the influence of digital transformation on ESG is more significant in state-owned firms, where a more a lenient policy environment and moderate market competitiveness promote improved ESG performance via digital transformation.

Keywords: digital transformation; ESG; manufacturing; organizational resilience; green total factor productivity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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