ESG performance, supply chain dependence configuration, and supply chain risk

Prior research has documented that ESG performance is associated with lower operational risk at the firm level, yet whether it also reduces the supply chain risk that the focal firm faces in its trading relationships remains underexplored. Grounded in resource dependence theory, this study examines how a focal firm’s ESG performance affects its supply chain risk, using a sample of Chinese A-share listed companies from 2009 to 2025. The results indicate that ESG performance significantly reduces the supply chain risk faced by the focal firm. Mediation analysis shows that this effect is partly transmitted through reductions in partner composition concentration and geographic concentration. At the network level, the focal firm’s ESG performance is negatively associated with the supply chain risk of its direct partners, secondary partners, and same-tier peers.