This study examines the impact of corporate digital transformation (DT) on Environmental, Social, and Governance (ESG) performance, focusing on how this impact varies across different stages of a firm’s life cycle (FLC). Using data from 6039 Chinese A-share listed firms from 2010 to 2019, the authors employ panel regression with fixed effects to analyze the relationship between DT and ESG performance. The initial findings indicate a significant and positive influence of DT on ESG performance, suggesting that companies embracing DT tend to outperform their peers in various ESG dimensions. Robust sensitivity analysis techniques, including sysGMM estimation, propensity score matching, and alternative variable methodologies, are used to strengthen these findings. The channel analysis reveals that firm performance acts as a mediator in the relationship between DT and ESG. Supplementary analysis shows that the positive impact of DT on ESG performance is most pronounced during the maturity and decline phases of the FLC, with state-owned enterprises experiencing a more substantial effect compared to non-state-owned firms. The study contributes to the understanding of ESG dynamics in firms and provides valuable insights for practitioners in formulating and executing effective ESG strategies in the digital world.This study examines the impact of corporate digital transformation (DT) on Environmental, Social, and Governance (ESG) performance, focusing on how this impact varies across different stages of a firm’s life cycle (FLC). Using data from 6039 Chinese A-share listed firms from 2010 to 2019, the authors employ panel regression with fixed effects to analyze the relationship between DT and ESG performance. The initial findings indicate a significant and positive influence of DT on ESG performance, suggesting that companies embracing DT tend to outperform their peers in various ESG dimensions. Robust sensitivity analysis techniques, including sysGMM estimation, propensity score matching, and alternative variable methodologies, are used to strengthen these findings. The channel analysis reveals that firm performance acts as a mediator in the relationship between DT and ESG. Supplementary analysis shows that the positive impact of DT on ESG performance is most pronounced during the maturity and decline phases of the FLC, with state-owned enterprises experiencing a more substantial effect compared to non-state-owned firms. The study contributes to the understanding of ESG dynamics in firms and provides valuable insights for practitioners in formulating and executing effective ESG strategies in the digital world.