# Does ESG and Digital Transformation affects Corporate Sustainability? The Moderating role of Green Innovation

**Authors:** Chenglin Qing, Shanyue Jin  
**arXiv:** [2311.18351](https://arxiv.org/abs/2311.18351)  
**Date:** 2023-11-30  
**Summary page:** https://www.summarizepaper.com/en/paper/2311.18351v1/

## Key points

- Growing recognition of the importance of environmental, social, and governance (ESG) factors in companies' sustainable development
- Artificial intelligence (AI) as a crucial digital technology for creating innovative and sustainable environments
- Study focuses on the relationship between corporate sustainability and ESG- and AI-based digital transformation
- Data collected from 359 mobile business platform users for statistical analysis
- ESG activities enable sustainable corporate growth by implementing eco-friendly operating processes
- Digital transformation based on AI positively affects corporate sustainability by identifying societal problems and preventing environmental accidents
- No positive moderating effect of green innovation on sustainability, but it is necessary for long-term sustainable growth
- ESG- and AI-based digital transformation is an essential tool for promoting corporate sustainability
- Survey used self-reporting as data collection method, which may introduce common method bias (CMB)
- Future studies should consider alternative data collection methods to mitigate potential flaws
- Research provides valuable insights into how ESG- and AI-based digital transformation can drive corporate sustainability efforts
- Availability of raw data enhances transparency in research findings

## Summary

Recently, there has been a growing recognition of the importance of environmental, social and governance (ESG) factors in companies' sustainable development. At the same time, artificial intelligence (AI) has emerged as a crucial digital technology that can contribute to creating innovative and sustainable environments. This study focuses on the relationship between corporate sustainability and ESG- and AI-based digital transformation. The study collected data from 359 mobile business platform users for statistical analysis. The findings reveal several important conclusions. Firstly, ESG activities have become key variables that enable sustainable corporate growth. Companies can implement eco-friendly operating processes through these activities. Secondly, the study confirms that digital transformation based on AI positively affects corporate sustainability. By leveraging technological innovation, companies can identify societal problems and prevent environmental accidents. However, the study does not find a positive moderating effect of green innovation on sustainability but emphasizes its necessity and importance for companies pursuing long-term sustainable growth. The study highlights that ESG- and AI-based digital transformation is an essential tool for promoting corporate sustainability. It contributes to expanding the existing literature in related fields and provides valuable insights for corporate management and government policymakers seeking to advance sustainability. It is worth noting that the survey used self-reporting as its data collection method which may introduce common method bias (CMB). Future studies should consider alternative data collection methods to mitigate this potential flaw. Overall, this research provides valuable insights into how ESG- and AI-based digital transformation can drive corporate sustainability efforts. The availability of raw data supporting the conclusions further enhances transparency in research findings. The authors declare no conflicts of interest related to this study's outcomes or any commercial or financial relationships that could influence their objectivity.