ESG performance and green innovation in a digital transformation perspective

Abstract In the era of the digital economy, companies strive to promote green innovation by enhancing their ESG performance, aiming to create new advantages for high‐quality corporate development. We investigate the influence and mechanism of corporate digital transformation, ESG performance, and green innovation using data from Shanghai and Shenzhen A‐share listed enterprises in China between 2012 and 2021. The study reveals that good ESG performance significantly fosters green innovation. Additionally, digital transformation plays a positive moderating role in the relationship between ESG performance and green innovation, which remains consistent even after conducting a series of robustness tests. The findings of this study offer valuable insights for improving the top‐level planning of “Digital Nation,” promoting the development of ESG concepts, and achieving “carbon peaking,” and “carbon neutrality.”