Does digital transformation enhance ESG performance? Empirical evidence from French listed companies
Hichem Ghnimi & Sihem Hermi
What the paper says
Purpose This study examines the effect of digital transformation (DT) on the environmental, social and governance (ESG) performance of French companies listed on the Paris Stock Exchange (NYSE Euronext Paris). Design/methodology/approach The analysis is based on a sample of 73 French companies listed on NYSE Euronext Paris during the period 2016–2024. Empirical estimations employ the feasible generalized least squares and two-stage least squares methods to ensure robustness against heteroscedasticity and contemporaneous correlations. Findings The results reveal a positive and significant effect of DT on ESG performance, highlighting the central role of digitalization as a strategic lever for integrating ESG considerations into corporate strategy. Practical implications The findings help stakeholders identify future growth opportunities by emphasizing digital technology as a driver of sustainable finance. Firms can leverage digitalization to improve ESG practices, better comply with regulatory requirements, and meet the expectations of responsible investors. Originality/value This research contributes to the literature on DT and ESG performance in two ways. First, it empirically examines, in the French context, the direct link between digitalization and sustainable corporate performance a topic that remains underexplored. Second, it highlights the strategic role of digital technology as a lever for enhancing ESG outcomes within listed companies.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.