Digital Transformation empowers ESG Performance based on the Mediating Effect of Green Innovation

Abstract

ESG (Environmental, Social and Governance) considerations has gained significant attention in business globally due to increased awareness of environmental issues, social inequalities, and Corporate Governance failures (1). In Indian context also, a similar awakening is taking place amongst the corporates. Companies operating in India are increasingly recognizing the imperative nature of aligning their strategies and operations with ESG principles (2). Around the globe most of the developing countries have pledged to carbon neutrality and improving their ESG Performance for sustainability. Upholding the shared vision of a sustainable future for mankind, the Indian government is also dedicated to global climate governance through concrete actions, and has announced enhanced climate commitments including 50 percent of installed electric capacity from non-fossil fuel sources to reach 500 GW by 2030, reducing carbon intensity of the economy by 45 per cent by 2030 and to achieve the target of net zero emissions by 2070 (3). While there is a widespread discussions and research going on Digitalization and how it affects the ESG at the Global level but there is a limited understanding of how Indian companies are following this transformative journey. The present research aimed to highlight the impact of Digital Transformation on ESG Performance through the mediating effect of Green Innovation with special focus on green processes and green products in manufacturing companies in India.