Digital technology transformation and corporate ESG performance: evidence from the “integration of informatization and industrialization” pilot zone

This study examines the impact of the 'integration of informatization and industrialization' (III) pilot policy on corporate ESG (environmental, social, and governance) performance. Utilizing unbalanced panel data from Chinese listed companies spanning 2010–2022, we construct a multi-period difference-in-differences (DID) model for empirical analysis. The results demonstrate that the III pilot policy significantly enhances corporate ESG performance, with findings remaining robust across a series of rigorous tests. Heterogeneity analysis reveals that the policy's positive effects are more pronounced in eastern and central China compared with western regions. The policy also consistently improves ESG performance across corporate life cycles – growth, maturity, and decline stages – although the magnitude varies. Notably, heavily polluting and technology-intensive industries exhibit stronger ESG improvements under the policy. Additional mechanism analyses indicate that green technology innovation capabilities, labour productivity levels, and government support collectively form a positive feedback loop in mediating the policy's impact on ESG outcomes. Our research provides novel policy-level evidence for advancing corporate ESG practices.