Is More Always Better? Effect of Industrial Robots on ESG Performance

Under the trend of sustainable development, ESG practices of companies are crucial, and digitization and intelligence are important paths that affect the ESG performance. Based on panel data of listed companies from 2010-2021, we explore the impact of industrial robot applications on companies’ ESG performance. We find an inverted U-shaped relationship between industrial robots and ESG performance, suggesting that robots’ direct intervention in the production process, unlike broader digital technologies, creates unique nonlinear dynamics that can initially enhance but subsequently hinder sustainable outcomes. Heterogeneity analysis reveals this nonlinear trajectory is more pronounced in firms within high-carbon industries, as well as those located in regions characterized by high marketization and developed economies. Furthermore, we explore the underlying transmission mechanism, examining the mediating role of internal control, which itself exhibits a nonlinear response to robot integration, ultimately affecting ESG performance. This article provides new evidence on how companies can advance ESG development through intelligent manufacturing, while offering a cautionary insight into the rational deployment of robotics in corporate operations.