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How does digital transformation affect corporate sustainability performance? Evidence from listed energy companies in China

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  • Li Guo
  • Fangxia Chen
  • Linhao Chen

Abstract

Promoting sustainable growth in the energy sector is key to China’s high-quality development under socialist modernization. Based on dynamic capability theory and the resource-based view, this study uses unbalanced panel data (2011–2023) of Chinese listed energy enterprises to examine how digital transformation (DT) impacts sustainable development performance (SDP), including its subdimensions: financial performance, environmental‒social governance (ESG), and innovation. Using two-way fixed effects models and mediation analysis, we find that (1) DT significantly enhances SDP; (2) this improvement operates through alleviating financing constraints and optimizing resource allocation efficiency; and (3) the benefits are more pronounced in small-scale enterprises and downstream segments of the energy value chain. These findings deepen the understanding of the role of DTs in sustainable development and provide practical guidance for energy firms.

Suggested Citation

  • Li Guo & Fangxia Chen & Linhao Chen, 2025. "How does digital transformation affect corporate sustainability performance? Evidence from listed energy companies in China," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-21, June.
    • Handle: RePEc:plo:pone00:0325898
    DOI: 10.1371/journal.pone.0325898
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    References listed on IDEAS

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