Urban transport infrastructure and corporate environmental, social, and governance performance: evidence from China

After China proposed the carbon peaking and carbon neutrality goals, environmental, social, and governance (ESG) has gradually become a focus in both business and academia. Using data from listed Chinese firms from 2009 to 2023, we introduce a metrological analysis model to examine the effects of urban transport infrastructure (e.g. high-speed rail [HSR] network) on corporate ESG performance and its mechanisms. We show that urban transportation infrastructure improves corporate ESG performance, particularly among firms in eastern and central China, those in the startup, growth, and maturity stages, as well as technology-intensive and capital-intensive firms. Moreover, urban transportation infrastructure improves corporate ESG performance by enhancing their innovation capacities and attracting senior managers with overseas backgrounds. Therefore, local governments should facilitate transport infrastructure construction and help firms’ high-quality development by enhancing their innovation capacity and attracting excellent talent. Our findings provide a reference for further exploring the impact of transportation infrastructure development on enhancing corporate ESG performance.