The Impact of ESG Ratings on Corporate Carbon Performance: From the Perspective of Internal and External Interaction

Against the backdrop of global climate governance and evolving ESG (Environmental, Social, and Governance) infrastructure, this study examines how market-based ESG ratings drive corporate carbon performance. Employing a staggered difference-in-differences (DID) approach based on a quasi-natural experiment with the initial release of SynTao Green Finance’s ESG ratings as an exogenous shock, we analyze Chinese A-share listed firms (2014–2022) from an internal and external interaction perspective. The results show ESG ratings significantly enhance carbon performance by improving internal control quality and analyst attention. Equity balance degree and public environmental concern strengthen these effects internally and externally, respectively. The positive impact is more pronounced in non-polluting industries, firms with low customer concentration, and those undergoing digital transformation. This study reveals the dual transmission mechanisms and boundary conditions of ESG ratings, offering theoretical and policy insights for achieving “dual carbon” goals.