Energy Transition Policies and Corporate Environmental, Social, and Governance Performance: Evidence from a Quasi-Natural Experiment on New Energy Demonstration Cities

To examine whether a place-based energy-transition policy improves corporate environmental, social, and governance (ESG) performance, we develop research adopting an interactional perspective between micro-level corporate behavior and the macro-level policy environment. Our analysis utilizes 37,817 firm-year observations from Chinese A-share firms listed in Shanghai and Shenzhen over the period 2009–2023. The empirical results are as follows. Firstly, the policy has a significantly positive effect on corporate ESG performance. Secondly, this effect is transmitted through greater environmental protection expenditure, stronger green innovation, and increased city-level credit supply. Thirdly, media attention further amplifies the policy impact. Finally, the effect is stronger among non-state-owned firms, mature-stage firms, high-carbon-intensity firms, and firms operating in less competitive markets. These findings clarify how local energy-transition initiatives shape corporate sustainability and highlight the complementary roles of environmental investment, green innovation, credit provision, and information scrutiny.