Supply chain digitalization and suppliers' ESG

In 2018, the Ministry of Commerce of China, together with eight other departments, jointly carried out pilot work on supply chain innovation and application, encouraging companies to utilize modern digital technologies to drive the transformation and upgrading of industrial chain supply chains. Utilizing the supply chain innovation and application pilot work as a quasi-natural experimental setting, we used the PSM-DID method to investigate the impact of supply chain digitalization on the ESG performance of suppliers. Our findings reveal that the digitization of supply chains enhances the ESG performance of suppliers. Furthermore, supply chain digitalization has more significant effect when suppliers are located farther away from the pilot firms. The research offers empirical evidence for the government's promotion of supply chain digital transformation, contributing to sustainable development of enterprises and the overall prosperity and stability of the economy and society.