Impact of Corporate Digital Transformation on ESG Performance: An Empirical Study Based on A-Share Listed Companies in the Power Industry

Abstract

Rapid advances in digital technologies (e.g., cloud computing, big data, artificial intelligence, Internet of Things) have revolutionized business operations, yet the impact of such corporate digital transformation on corporate ESG performance remains unclear. To address this gap, we empirically study China’s power industry by examining a-share listed power companies from 2011 to 2022—a sector pivotal for national carbon neutrality goals and sustainable development. We use the China Securities Index (CSI) ESG ratings as a performance metric to assess how digital transformation affects outcomes across environmental, social, and governance dimensions. We find that digital transformation significantly improves overall ESG performance, boosting energy efficiency and reducing carbon emissions, improving service quality and corporate social responsibility, and strengthening transparency and risk management. Our study confirms the positive role of digitalization in corporate sustainability. It also provides insights for industry leaders and policymakers to leverage digital transformation in advancing sustainable development and informing effective ESG policies.