Can energy internet improve corporate ESG performance? -- Evidence from Chinese high energy-consuming companies

Under the challenges of global crises such as climate warming, ESG performance, which represents sustainable development, has received widespread attention at home and abroad. Using the panel data from 2011 to 2020, comprising 726 high energy-consuming companies listed on the Shanghai and Shenzhen A-shares, this paper takes Energy Internet demonstration project in 2016 as a quasi-natural experiment and builds a difference-in-difference model to study its microscopic policy effects. The study found that, firstly, Energy Internet can markedly enhance ESG performance of high energy-consuming companies. Secondly, the mechanism test finds that Energy Internet can facilitate high energy-consuming enterprises to enhance their ESG performance through three mechanisms: increasing government subsidies for enterprises in energy conservation and environmental protection, absorbing talent employment and improving information environment within the enterprises. Finally, the heterogeneity analysis proves that Energy Internet's policy effects are more pronounced in regions with higher financial expenditures on local science undertakings and among state-owned enterprises. China ought to persist in advancing the development of Energy Internet and provide companies with adequate support on finance, talent and technology. Meanwhile, during the construction of Energy Internet, attention should be paid to adapting to local conditions and enterprises.