The Impact of ESG Performance in Manufacturing on Eco-Friendly and Low Carbon Development – Focusing on Listed Companies in Tianjin, China -

As global climate change intensifies, green and low-carbon development has become an international consensus. The manufacturing sector, as a major energy consumer and carbon emitter, plays a critical role in sustainable regional development through its ESG (Environmental, Social, and Governance) performance. This study examines 43 listed manufacturing companies in Tianjin from 2018 to 2023, constructs a green and low-carbon development index system using the entropy weight method, and empirically tests the impact of ESG performance on Tianjin’s green and low-carbon development. The moderating effects of digital transformation and executive compensation are also explored. Key findings include: (1) Manufacturing ESG performance significantly promotes green and low-carbon development in Tianjin, with more pronounced effects in Non-State-Owned Enterprises (NSOEs) and small-to-medium-sized enterprises (SMEs); (2) All three ESG dimensions—environmental (E), social (S), and governance (G)—positively influence green and low-carbon development; (3) Digital transformation and executive compensation strengthen ESG’s positive impact by optimizing resource allocation and incentivizing managerial behavior. This study provides theoretical insights for policymakers and corporate ESG practices.