<p>This research explores the impact of ownership concentration and financial performance on ESG behavior in Chinese listed companies, filling an important gap in ESG literature. Utilizing a panel dataset of Chinese firms from 2009 to 2023 and employing a Difference-in-Differences model, the research examines how a firm’s financial performance, compared to industry averages, interacts with ownership concentration to influence ESG strategies. The results reveal that while financial performance generally impacts ESG inversely, ownership concentration moderates this effect, allowing firms with high ownership concentration to maintain ESG engagement even during periods of lower financial performance. The findings underscore the significance of ownership structure in sustaining ESG commitment, implying that major shareholders can play a stabilizing role in ESG practice, even during periods of strong financial performance. These insights provide guidance for policy formulation and firm development strategies, indicating the need for governance frameworks that enable active shareholder oversight of ESG activities to enhance sustainability, resilience, and long-term value.</p>