Can Confucianism improve ESG performance?

•Confucianism can improve ESG performance.•This article fills a gap by examining the impact of Confucianism on ESG.•There is high consistency in content and logic between Confucianism and ESG. While existing literature has demonstrated the significant impact of culture on firm decision-making, it remains unclear whether and how cultural factors influence a firm's ESG performance. In this study, we utilize Confucianism as a cultural proxy in the context of China to investigate its effects on ESG performance. We find that Confucianism plays a pivotal role in enhancing ESG performance, demonstrating a consistently positive influence across all three dimensions of ESG. This research provides compelling evidence that Confucianism serves as a valuable intellectual framework that can bolster efforts towards sustainable development.