Asian Journal of Economics, Business and Accounting

In the process of globalization, corporate social responsibility has gradually become a focus of public attention, and environmental, social and governance (ESG) performance has increasingly become an important manifestation of a company's competitiveness. Outward Foreign Direct Investment (OFDI) refers to investment activities carried out by enterprises in foreign countries with the aim of obtaining long-term benefits, and it is the core form of an enterprise's international operation. Based on the observed values of 4,244 listed companies on the Shanghai and Shenzhen Stock Markets from 2006 to 2024, this paper uses a fixed-effect model for empirical analysis to explore the multi-dimensional impact mechanism of ESG performance on OFDI. The research finds that ESG performance has a significant promoting effect on OFDI; good ESG performance can reduce investment risks, enhance the company's social recognition and brand value, alleviate operational risks, and expand emerging markets, thereby strengthening the company's capital acquisition ability. This study not only enriches the relevant theories of ESG economic consequences and enterprise internationalization, but also provides practical guidance for Chinese enterprises to reduce overseas investment risks and enhance international competitiveness by improving ESG levels, and at the same time offers experience-based references for government departments to improve ESG regulatory policies and guide enterprises to "go global" in a high-quality manner.