The Impact of ESG Performance on Corporate Competitiveness

With sustainable development emerging as a global consensus and China’s “dual carbon” goals advancing in depth, Environmental, Social, and Corporate Governance (ESG) performance has become an increasingly critical benchmark for assessing a firm’s long-term value and competitiveness. This study investigates the effect of ESG performance on corporate competitiveness by examining Chinese A-share listed firms from 2013 to 2023 through a two-way fixed effects model. The results demonstrate that ESG performance significantly enhances corporate competitiveness, with the effect being particularly pronounced among large-scale and state-owned enterprises. These findings provide valuable insights for firms seeking to embed ESG principles into their core strategies to strengthen competitiveness, as well as for policymakers aiming to refine ESG-related regulatory frameworks.