How does ESG performance affect green transformation of resource-based enterprises: Evidence from Chinese listed enterprises

Resource-based industries face greater environmental constraints and transformation dilemmas than other industries do; their green transformation is of great significance to sustainable development and green recovery. Despite this, few studies have examined the impact of ESG performance on the green transformation of resourcebased enterprises. Therefore, this study investigates the impact and mechanism of ESG performance on the green transformation of resource-based enterprises using data of Chinese listed enterprises between 2009 and 2022. The main findings are as follows. First, ESG performance has a significant positive impact on green innovation and total factor productivity (TFP) of resource-based enterprises; they are conducive to green transformation. Furthermore, heterogeneity is observed in enterprises' ownership, size, subsector type, and sector competitiveness. Second, mechanism analysis reveals that R&D investment and risk-taking levels of resource-based enterprises are important channels through which ESG performance promotes green transformation. Additionally, employees' innovation efficiency and executives' environmental awareness are important mechanisms through which ESG performance promotes green innovation and TFP of resource-based enterprises, respectively. Third, further analysis suggests that ESG performance plays a dual role of "incremental improvement" in green innovation. Additionally, ESG uncertainty weakens the promoting effect of ESG performance on green transformation.