In the dual context of the rapid development of the digital economy and the promotion of the "dual carbon" goal, digital transformation has become an inevitable choice for enterprises to achieve high-quality development, and ESG performance is the core indicator to measure the sustainable development ability of enterprises. This paper takes the A-share listed companies in Shanghai and Shenzhen from 2014 to 2024 as a research sample, and empirically examines the impact of digital transformation on ESG performance by using a two-way fixed effect model, and explores its mechanism and heterogeneity characteristics. The results show that the degree of digital transformation of enterprises significantly positively affects ESG performance, and this conclusion is still valid after the robustness and endogenousness tests. The mechanism analysis shows that digital transformation indirectly improves the ESG performance of enterprises by enhancing green innovation capabilities, promoting information transparency, and improving internal control quality. Heterogeneity analysis shows that the promotion effect of digital transformation on ESG performance is more significant in state-owned enterprises, enterprises in the central and western regions, and large-scale enterprises. This paper enriches the relevant theories of digital transformation and ESG performance, and provides empirical reference and practical enlightenment for governments to formulate relevant policies and optimize development strategies for enterprises. 

Muxi Luo. Research on the Impact of Digital Transformation on ESG Performance. Academic Journal of Business & Management (2026), Vol. 8, Issue 4: 32-40. https://doi.org/10.25236/AJBM.2026.080405.

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