The Integration of Institutions and Technology: Do UNPRB and Fintech Foster ESG Performance in Private Corporates?

Leveraging the exogenous shock of Chinese commercial banks’ adoption of the United Nations Principles for Responsible Banking (UNPRB) as a quasi-natural experiment, this study employs a Time-Varying Difference-in-Differences (TV-DID) approach to investigate how formally committed responsible credit, augmented by Fintech, enhances ESG performance in private enterprises. The findings reveal that banks adopting UNPRB significantly improve the post-loan ESG performance of their private enterprise borrowers compared to non-adopting banks, with Fintech serving as a positive moderator. Mechanism analysis indicates that, under the empowerment of financial technology, commercial banks that extend loans to enterprises are influenced by the signing of the United Nations Principles for Responsible Banking (UNPRB). Banks promote the sustainable development of enterprises through pre-loan “screening effects” and post-loan green “governance effects”. Heterogeneity analysis indicates stronger ESG improvement effects for enterprises in environmentally sensitive industries, those with high capital intensity, and those holding long-term loans. Extended research further identifies a significant enhancement in ESG alignment between banks and enterprises following UNPRB adoption. By examining responsible credit investment, this study not only broadens the scholarly discourse on sustainable finance and Fintech but also offers empirical insights from a representative emerging market context.