Abstract: To achieve the "3060" dual-carbon goal, China has been constantly advancing its corporate ESG system, aiming to elevate ESG rating. AI technology has become a major driver for improving corporate ESG performance by optimizing decision-making and enhancing resource efficiency through digitalization. This study explores the impact of AI-based digital transformation on corporate ESG performance based on the data of A-share listed multinational companies spanning the years 2009 to 2022. The findings indicate that digital transformation significantly improves enterprises' ESG scores, showing an empowerment effect. The Mediation effect test shows that digital transformation promotes ESG performance by alleviating financial constraints and enhancing green innovation. Government subsidies positively moderate the relationship between digital transformation and financial constraints. In addition, the enhancement of digital transformation on ESG performance is more significant in state-controlled, large-scale enterprises and enterprises with two-job separation. The study provides new perspectives on the construction of ESG system for multinational enterprises in the context of AI technology and suggests that enterprises accelerate their digital transformation and enhance ESG disclosure, while governments and regulators should improve digital infrastructure and provide incentive policies. This study investigates the influence of digital transformation on ESG performance, with a specific emphasis on non-economic benefits. It offers practical insights for multinational enterprises in developing countries to establish and enhance their ESG systems within the context of the digital era. Furthermore, the findings serve as a critical reference for promoting the integration of AI technologies into ESG practices, thereby advancing sustainable development.

Keywords: AI; digital transformation; ESG performance; mediating effect

JEL codes: L25; L86; Q55

DOI: ...