Taking A-share listed companies from 2010 to 2022 as the research sample, based on stakeholder and resource dependence theories, this paper analyzes the impact and mechanism of supply chain finance on ESG performance. The results show that enterprises’ engagement in supply chain finance can significantly enhance their ESG performance, and the degree of digital transformation plays a positive moderating role. This conclusion remains valid after a series of robustness tests. Mechanism tests reveal that supply chain finance mainly boosts ESG performance through financing and relationship effects. Heterogeneity tests show that stateowned enterprises, those with bank-enterprise relationships, those with high financing constraints, and those in regions with low financial development levels benefit more significantly from supply chain finance in improving their ESG performance. The research conclusions have practical significance and value for developing supply chain finance business to promote sustainable development and build green and low-carbon supply chains.