The impact of ICT development on ESG performance: International evidence

Abstract

Research background: Advances in information and communications technology (ICT) have been a key factor in the transformation of economies and societies around the world. However, the impact of ICT on national ESG (environmental, social, and governance) performance has not been fully explored. Purpose of the article: This study intends to examine the relationship between ICT development and national ESG performance. In addition, this study will investigate the mechanism through which ICT development affect national ESG performance. Methods: This paper uses the panel fixed effects models with panel data from 149 countries between 2003 and 2020. The dynamic panel model is used in the robustness test. Findings & value added: The findings reveal that ICT development promotes national ESG performance through enhancing green innovation and improve human capital. Moreover, the effect of ICT development on national ESG performance is more evident in countries with higher levels of economic development, better government quality, and stronger financial development. The findings in this paper provide useful evidence and insights for countries to formulate policies to improve national ESG performance from the ICT sector.